JAKARTA - United States Treasury Secretary Scott Bessent said the US and China had resolved issues surrounding the delivery of rare earth and magnetic minerals to America.
As part of retaliation for the new US tariff, China suspended exports of various important minerals and magnets, which destabilize critical supply chains for automakers, aerospace manufacturers, semiconductor companies, and military contractors around the world.
During the US-Chinese trade negotiations in May in Geneva, Beijing committed to withdrawing the measures it has taken since April 2, but these essential materials did not move as quickly as agreed so the US implemented countermeasures.
"I believe now that we -- as agreed, magnets will flow," Bessent said in an interview with Fox Business Network.
Attempts to resolve the dispute include a phone call between US President Donald Trump and Chinese President Xi Jinping that saw teams from both sides meet again in London, as negotiators try to end the trade war between the world's largest economies.
Trump said on Thursday the United States had signed a deal with China the previous day but did not provide details.
A White House official said the United States had reached an agreement with China on how to speed up rare land shipments to the US.
"The government and China have agreed to make additional understanding for a framework to implement a Geneva agreement that involves accelerating their delivery to the US," the official said.
China's trade ministry said the two countries had confirmed details about the framework for implementing the consensus of Geneva trade talks.
China will approve export applications for controlled goods in accordance with the law. Not mentioned about rare land.
China has double-use restrictions on rare land it considers "very serious" and has examined buyers to ensure these materials are not diverted to US military purposes, according to industry sources.
This has slowed down the licensing process.
The Geneva deal faltered as mineral export restrictions were important by China, prompting the Trump administration to respond with its own export controls preventing the delivery of semiconductor design software, aircraft, and other goods to China.
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In early June, Reuters reported China had granted temporary export licenses to rare earth metal suppliers from top US three automakers, according to two sources familiar with the matter, as supply chain disruptions began to emerge.
Later that month, Trump said there was an agreement with China in which Beijing would supply rare earth magnets and minerals while the US would allow Chinese students at his colleges and universities.
Although the deal has shown potential progress after months of uncertainty and trade disruption since Trump took office in January, it also underscores the long path to the final and definitive trade deal between the two economic rivals.
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