China on Friday confirmed the details of a new trade agreement with the United States, aimed at easing escalating tensions between the world’s two largest economies. Under the deal, Washington will lift certain “restrictive measures” while Beijing pledged to “review and approve” export applications for critical goods, including rare earth elements essential for electric vehicles, electronics, and defence.
“It is hoped that the United States and China will meet each other halfway,” China’s commerce ministry said, adding that both sides had “further confirmed the framework” for implementing the Geneva consensus reached last month.
The White House had earlier announced that both nations reached an additional understanding, following concerns from Washington that Beijing was delaying export licences for rare earths. Talks in London this month helped iron out differences, providing a path forward.
Markets responded positively, with European shares rising on Friday amid optimism over easing trade tensions. The pan-European STOXX 600 index gained 0.6%, heading for its first weekly advance in three weeks.
