On June 10, the US-China trade teams reached a framework agreement late Tuesday night but still await approval from the two countries’ leaders. The White House stated on Wednesday that President Trump is reviewing the details of the agreement.
At a press briefing in the White House on Wednesday, spokesperson Karoline Leavitt mentioned that President Trump and his trade team had discussions regarding the agreement reached in London. “The President is discussing specific details with them. But he is satisfied with what he has heard. China has agreed not only to this agreement but also to open its markets to the United States,” Leavitt told reporters. “As for this agreement, we will return to the terms agreed upon in Geneva concerning certain key minerals in magnetic components transported from China to the United States. We also agreed to fully comply with the Geneva Agreement. Therefore, the President is currently reviewing these details with his trade team. I believe you will hear more news from him soon.”
The trade negotiations between the US and China that concluded late Tuesday night in London focused on export controls by both sides. In the US-China trade war, the Chinese Communist Party used restrictions on exporting rare earths to the US as a bargaining chip, while the US imposed additional export controls on Beijing to strengthen its negotiating position.
Recently, the US started implementing export restrictions on items such as semiconductor design software, jet engine parts, chemicals, and nuclear materials to compel China to return to the negotiating table and agree to export rare earths to the US. Furthermore, the US State Department also announced the initiation of revoking visas for Chinese students.
Trump had criticized China for not abiding by the Geneva Trade Agreement. According to Bloomberg, a senior US government official stated that the recent export restrictions imposed by the US were to force China to fulfill its commitments made in Geneva.
US Commerce Secretary Howard Lutnick stated on CNBC on Wednesday, “We need to ensure that when they play the rare earth magnet card, we also play our own card and tell them, ‘Listen, you can’t treat America this way. America is too great, too powerful.'”
“So if you want to provoke us, America under the leadership of Donald Trump is strong enough to hit back at you just the same.”
Sources informed Bloomberg that if China complies with the agreement and approves all key mineral permits for sale to US companies, at least some of the recently implemented US export restrictions would be lifted. However, if the Chinese government fails to comply with the agreement, the Trump administration might take further measures beyond retaining the recent export restrictions. These sources added that the US is prepared to enhance controls on jet engine parts and other goods or further target Chinese companies like Huawei to ensure the flow of rare earths from China to the US.