China Confirms US Trade Truce As Beijing Seeks Cancellation Of Trump Administration’s Restrictive Measures

China confirmed the U.S.-China trade deal on Friday afternoon (Beijing time), aligning with earlier statements by U.S. President Donald Trump and Commerce Secretary Howard Lutnick.

While addressing reporters, a Chinese Commerce Department spokesperson said the two sides have reached a “consensus in principle on the framework for implementing the important consensus reached by the two heads of state on June 5 and consolidating the results of the Geneva economic and trade talks.”

The spokesperson stated that the teams from the U.S. and China maintained close communication following the high-level talks held in London on June 9-10.  They recently confirmed the details of the framework, he said.

The official stated that China will review and approve export applications for controlled items that meet the conditions in accordance with the law, adding that the U.S. will, in turn, cancel a series of restrictive measures taken against China.

He expressed hopes that the U.S. and China would meet each other halfway, and follow the critical consensus and requirements reached by the two heads of state on June 5. 

The U.S. index futures extended their gains and were modestly higher following China’s confirmation of the trade deal.

The markets have largely ignored the trade standoff, tariff uncertainty, and the recent Israel-Iran tensions, which have since been diffused.

 The SPDR S&P 500 ETF (SPY) has gained over 5% this year, while the iShares MSCI China ETF (MCHI) is up about 20%.

After returning from the NATO summit, Trump told reporters at the White House on Thursday that a deal had been struck with China, although he did not provide any details.

Lutnick, however, said in a Bloomberg interview that a deal was sealed two days ago. “They’re going to deliver rare earths to us,” and once they do that, “we’ll take down our countermeasures,” he said.

The bone of contention between the U.S. and China is over rare earth minerals, with the latter being a key supplier. These are being used in items, ranging from wind turbines to jet planes. Meanwhile, the U.S. has hit back with curbs, primarily on technology-related products, such as chips and software.

A Reuters report, citing a White House official, said China and the U.S. have “agreed to an additional understanding for a framework to implement the Geneva agreement,” adding that the understanding is about “how we can implement expediting rare earths shipments to the U.S. again.”

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