China confirmed on Friday that the United States has begun lifting some export restrictions, marking a cautious step forward in the ongoing trade discussions.
But Chinese officials also issued a stern warning: this fragile progress must not be undermined.
According to a statement from China's Ministry of Commerce, both countries are "stepping up efforts to implement" the trade framework agreed upon in June's talks held in London.
According to Reuters, the ministry urged the US to fully respect the "mutually beneficial" nature of their economic ties and avoid taking actions that could destabilize the "hard-won" truce.
"China hopes the US can continue to meet it halfway and maintain the stability of bilateral trade and economic relations," the ministry said.
This comes as the July 9 deadline approaches — a key test for the 90-day pause on US tariffs known as the "reciprocal" tariffs, introduced by President Donald Trump.
Analysts warn that while China may not face new tariffs directly, it could still be affected by US trade deals with other nations that include measures targeting Chinese supply chains.
Julian Evans-Pritchard of Capital Economics explained, "Trump is keen to crack down on the rerouting of Chinese goods through third countries like Vietnam. That could reduce the impact of US tariffs and indirectly target China."
The U.S. drops some export restrictions on China in a sign of easing trade tensions: Washington has rolled back some export restrictions on key technologies and raw materials to China, signaling a possible softening of trade tensions https://t.co/CXWDsqjRcN pic.twitter.com/ARgma6jeX8
— Quartz (@qz) July 3, 2025
China Resumes Rare Earth Exports After US Trade Talks Progress
Earlier this year, China suspended exports of vital minerals in response to US trade actions. During talks in Geneva in May, China promised to ease these restrictions.
Progress was made in June, when both sides agreed to fast-track approvals for rare earth shipments and controlled items.
Now, China says it is reviewing export license applications for these materials. At the same time, the US has resumed shipments of chip design software, jet engines, and ethane to China.
The Ministry of Commerce noted, "Teams on both sides are stepping up efforts to implement relevant outcomes of the London Framework."
Still, analysts caution that the core issues driving tensions between the two nations remain unresolved. "There is clearly a risk that the deal breaks down at some point," Evans-Pritchard warned, Investing reported.
China has not ruled out further retaliation if it feels targeted by new restrictions from US deals with other countries.
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