The United States and China have confirmed a trade framework designed to restart and accelerate Chinese rare-earth shipments to the U.S., senior officials from both governments said on 26-27 June. The understanding was first disclosed by the White House and later endorsed by China’s Ministry of Commerce, marking the most substantive progress since the two sides revived negotiations in Geneva last month.
Under the deal, Beijing will "review and approve" export licences for rare-earth minerals and other controlled items, while Washington will lift a series of recently imposed restrictions, including curbs on U.S. ethane cargoes bound for China. U.S. Commerce Secretary Howard Lutnick said the ethane controls will be removed once the first rare-earth deliveries begin, calling the arrangement "an important step toward normalising supply chains."
The framework consolidates the Geneva consensus reached in May and was finalised during follow-up talks in London on 9–10 June. Rare earths, a set of 17 metals essential to electric vehicles, wind turbines and advanced weaponry, have been subject to Chinese export licensing since April, disrupting global manufacturers after Washington introduced new tariffs and technology controls earlier in the year.
While both capitals hailed the agreement as a breakthrough, negotiators acknowledged that further talks are required to settle other disputes and avert an escalation in U.S. tariffs scheduled for 9 July. Still, the accord signals a tentative easing of tensions between the world’s two largest economies and offers relief to industries that depend on steady supplies of critical minerals.
The U.S. has lifted restrictions on ethane exports, enabling Enterprise Products Partners to resume shipments to China after recent license curbs were revoked. This move indicates a potential easing in trade tensions following rare earth agreements.
U.S. Removes Restrictions On Ethane Exports, Permitting Enterprise Products Partners To Restart Shipments To China, Indicating Improved Trade Relations After Rare Earth Deals. 🇺🇸🤝
U.S. LIFTS CURBS ON ETHANE EXPORTS, ALLOWING ENTERPRISE PRODUCTS PARTNERS TO RESUME SHIPMENTS TO CHINA AFTER REVOKING RECENT LICENSE RESTRICTIONS, SIGNALING A THAW IN TRADE TENSIONS FOLLOWING RARE EARTH AGREEMENTS - RTRS
