China, U.S reach a trade deal

China confirmed on Friday details on the framework of a trade deal with the United States, saying Washington would lift “restrictive measures” while Beijing would “review and approve” items under export controls.

A top priority for Washington in talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defence equipment.

China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to blistering tariffs imposed by Trump.

The two sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat tariffs on each other’s products.

China also committed to easing some non-tariff countermeasures but US officials later accused Beijing of violating the pact and slow-walking export licence approvals for rare earths.

They eventually agreed on a framework to move forward with their Geneva consensus following talks in London this month.

A White House official also told AFP on Thursday that Donald Trump’s administration and China had “agreed to an additional understanding for a framework to implement the Geneva agreement”.

That clarification came after the US president told an event that Washington had “just signed” a deal relating to trade with China, without providing further details.

Beijing confirmed on Friday that an agreement had been reached.

“It is hoped that the United States and China will meet each other halfway,” a spokesperson for the commerce ministry said in a statement.

It said both sides had “further confirmed the details of the framework”.

Under the deal, China “will review and approve applications for the export control items that meet the requirements in accordance with the law”.

“The US side will correspondingly cancel a series of restrictive measures against China,” the commerce ministry said.

Separately on Thursday, the White House also indicated that Washington could extend a July deadline when steeper tariffs affecting dozens of economies are due to kick in.

Trump imposed a sweeping 10 percent levy on most trading partners this year but also unveiled — then halted — higher rates on dozens of economies while negotiations took place.

That pause is set to expire July 9.

When asked if there would be another delay, press secretary Karoline Leavitt told reporters: “Perhaps it could be extended, but that’s a decision for the president to make.

“The deadline is not critical.

“The president can simply provide these countries with a deal if they refuse to make us one by the deadline.”

This means Trump can “pick a reciprocal tariff rate that he believes is advantageous for the United States”, she added.

Most stock markets in Asia and Europe rose Friday on hopes for a delay.

AFP