Quiet on the Trade Front: China Shields Agreement Details with the US
U.S.-China customs accord remains undisclosed by Chinese authorities
In a surprising turn of events, China is maintaining a veil of secrecy following US President Donald Trump's announcement of an agreement to relax export restrictions amidst the ongoing trade spat. Foreign Ministry spokesman Lin Jian in Beijing pronounced that substantial progress has been made in tackling each other's economic and trade concerns. The People's Republic anticipates collaboration with the US to execute the consensus established.
Regarding the handling of rare earths, a Ministry of Commerce representative in Beijing confirmed that China would reassess relevant export permits in accordance with the law. Beijing has already authorized a selected number of permits, with further strengthening of the approval process.
Trump shared his insights on his Truth Social platform, disclosing that China has consented to provide certain raw materials such as rare earths to the US. In response, the US pledged to continue accommodating Chinese students at its universities.
Trump also stated that the world's two financial heavyweights have reached an accord on tariffs. US imports from China would have a 55% duty, while China would penalize goods from the US with a 10% levy, as per Trump's declaration. Diplomats from both nations engaged in discussions on a neutral platform in London on Monday and Tuesday. After the meetings, emissaries from Beijing and Washington revealed their intentions to enforce the Geneva consensus from mid-May.
In Switzerland, China and the US agreed in mid-May to decrease their bilateral import tariffs by 115 percentage points each and postponed further negotiations for 90 days. However, the specifics of the Geneva agreement and the London accord remain a mystery. US Trade Minister Howard Lutnick subtly implied in London that a written version of the package would not be disclosed. Some onlookers argue that the talks were merely a return to the status quo, suggesting limited progress in resolving the trade conflict.
Sources: ntv.de, dpa
Insights:
- Tariff Reduction Agreement: Both China and the US agreed to decrease their respective tariffs on imports in a bid to alleviate the crippling effect of high tariffs on their economies.
- Geneva Accord: Signed on May 12, 2025, the Geneva accord called for a 90-day pause on most US tariffs on Chinese goods and the removal of US companies from China's trade blacklist, thereby granting renewed access to rare earth supplies.
- London Accord: Signed on June 11, 2025, the London accord was designed to reinforce the Geneva accord and address China's renewed commitment to export rare earth elements and magnets to the US, easing the severe restrictions that had been imposed.
These agreements aim to relieve burdens on both economies by resolving trade disputes and stabilizing economic conditions, while emphasizing the importance of securing access to critical materials such as rare earth minerals.
The Community policy and general-news must highlight the recently signed London Accord, reinforcing the Geneva accord, and addressing China's commitment to export rare earth elements to the US, thereby easing the severe restrictions that have been imposed. The Employment policy, business, finance, politics, and employment policy, should explore the potential impact of these agreements on the job market, trade relations, and economic stability of both nations, including a possible influx of Chinese students in US universities as part of the deal.
