US, China reach deal to ease export curbs: Reports

The US and China have agreed on a framework aimed at reviving their trade truce and addressing export restrictions, particularly concerning critical minerals, according to reports.

As per reports, US Commerce Secretary Howard Lutnick described the outcome as putting meat on the bones of a previous understanding reached in Geneva last month. That earlier deal had focused on reducing the steep retaliatory tariffs both sides had imposed some exceeding 100%.

However, the Geneva pact had faced hurdles due to China’s continued curbs on exports of rare earth minerals  essential for several advanced technologies  prompting Washington to retaliate with fresh export controls targeting semiconductor software, specialty chemicals, and other sensitive tech goods.

The recent talks in London, which reportedly concluded just before midnight local time, resulted in a partial breakthrough. Lutnick stated that some of the US restrictions would be lifted under the new framework, though he did not elaborate on specific measures.

China’s Vice Commerce Minister Li Chenggang, in a separate briefing to the press, confirmed that a framework agreement had been reached and would be forwarded to top-level leadership in both countries for further consideration.

Both sides now reportedly face an August 10 deadline to finalise a broader agreement. Failing that, the suspended tariff rates are expected to surge from around 30% to 145% on US imports from China, and from 10% to 125% on Chinese imports from the US.