US and China agree on plan to ease export controls after trade talks in London

CNN ^ | 06/10/2025 | Nectar Gan and John Liu

[SeekAndFind]

The United States and China have agreed on a framework to implement their trade truce, officials on both sides said Wednesday, after concluding two days of talks in London to defuse tensions and ease export restrictions that threaten to disrupt global manufacturing.

American and Chinese negotiators agreed “in principle” to a framework on how to implement the consensus reached by the previous round of talks in Geneva last month and a phone call between the two countries’ leaders last week, China’s trade negotiator Li Chenggang told reporters in London, according to Chinese state broadcaster CGTN.

Officials on both sides will now take the proposal back to their leaders for approval, US Commerce Secretary Howard Lutnick told reporters in a separate briefing in London, Reuters reported. “If that is approved, we will then implement the framework,” he said.

While neither side disclosed any specifics of the deal, Lutnick indicated that both had agreed to roll back export controls on goods and technologies that are crucial to the other.

China’s restrictions on exports of rare earth minerals and magnets to the US will be resolved as a “fundamental” part of the framework agreement, Lutnick said, according to Reuters.

“Also, there were a number of measures the United States of America put on when those rare earths were not coming,” he added. “You should expect those to come off, sort of as President Trump said: ‘In a balanced way.’”

Frustrated by what it saw as Beijing’s retreat from its pledge made in Geneva to ease rare earth exports, the US restricted chip design software sales to China and vowed to “aggressively revoke” Chinese student visas.

[SeekAndFind]

Also, Kevin Hassett, director of the National Economic Council, told CNBC Monday that the Trump administration may be open to loosening restrictions on some microchips that China views as critical to its manufacturing sector. The US will maintain restrictions on “very, very high-end Nvidia” chips that are capable of powering artificial intelligence systems, he added.

CNN has reached out to the White House for comment.

[dadgum]

Trust the Chinese to act like Chinese - they lie, they cheat, they steal, they murder.

Any “deal” with the CCP is no “deal” at all. It is fraudulent.

[Owen]

Zero hedge went into this a great deal more deeply than CNN, and their conclusion is that there is no agreement and all of the verbiage is intended to try to avoid terrifying the markets, because no agreement means no neodymium.

Make no mistake here. The US has nothing that would exert the sort of pressure on China than an absence of neodymium exerts on the US. There’s talk of ethane, but there are other sources of ethane. It will take 7 to 10 years for another source of neodymium and without neodymium no magnets.

[Robert357]

If China is true to its word this time........

Wait for the stock market to go crazy into a bull run on Wednesday and Thursday.

Then wait for other countries, to queue up to negotiate reciprocal trade deals and the stock market bull run to continue.

[Sam Gamgee]

I’m hoping Trump is not backing off on tariffs. Just alone the fact that slave labor is used by suppliers of Lenovo should affect the American response on trade with China. That and prison labor. If Trump’s complaint with Canada and Mexico is unfair trade practices then the same can be said ten fold on China.

[millenial4freedom]

China...true to their word? I have the same level of confidence in that as I have in a MAGA candidate winning the governor’s race here in Massachusetts.

[1Old Pro]

I have the same level of confidence in that as I have in a MAGA candidate winning the governor’s race here in Massachusetts.

Yep, and unfortunately I think Elise Stephanik, if she runs for NY Gov, will also have difficulty. There is no GOP Committee infrastructure and that would be necessary, it was key in Pataki's win.