Former President Trump has announced a second trade “framework” with China, easing export controls and resuming student visas, but critics note it reiterates existing pledges and may leave the US at a strategic disadvantage .
Trump Administration Announces Repeat China Deal as Trade Tensions Simmer
For the second time in as many months, President Donald Trump has announced what is being described as a new trade deal with China—though many of the terms appear to mirror an agreement already reached in May.
The handshake deal, which came after two days of talks in London, reflects limited progress in de-escalating a trade standoff between the world’s two largest economies. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer said late Tuesday that both sides had agreed to scale back some of the punitive measures imposed since the May 12 framework. However, key provisions still require approval from Trump and Chinese President Xi Jinping.
Former U.S. trade official Emily Kilcrease summarized the development as a recycled agreement. “It’s like they agreed to stop hitting each other last month and have now come back to remind each other not to start again,” she said.
According to U.S. sources, the framework includes American concessions such as easing export restrictions on certain products and resuming Chinese student visa processing. In contrast, China has reaffirmed its earlier promise to lift its blockade on exports of critical minerals—materials vital for a range of industries, from electronics to defense.
China, which produces nearly 70% of the world’s critical minerals, continues to hold a dominant position in the supply chain. That leverage has allowed Beijing to pressure Washington more effectively than the U.S. has been able to do in return. Since December, China has restricted the export of 11 minerals, many of which are listed by the U.S. Geological Survey as vital to national security.
Critics argue that the U.S. is giving up too much too quickly. Lutnick’s suggestion that export controls on sensitive items like airplane parts, semiconductors, and certain software could be eased in exchange for mineral access raised alarms among trade and national security experts.
“This sets a very dangerous precedent,” Kilcrease warned. “Export controls have always been grounded in national security, not as bargaining chips. By using them to negotiate, the U.S. risks undermining its entire export control regime.”
The Trump administration has long used export controls alongside tariffs in its efforts to reshape the U.S.-China economic relationship. Since his second term began, Trump’s team has expanded restrictions to cover lower-grade chips and broader categories of tech, even as pressure from American businesses mounts to loosen restrictions and regain access to the Chinese market.
While China’s state-backed investments have helped it build a near-monopoly in rare earths, the U.S. lags significantly in domestic production and refining. This imbalance gives Beijing a trump card that U.S. negotiators struggle to counter.
“China knows how to use this leverage,” said Marc Busch, a trade expert and former advisor to USTR and the Commerce Department. “They’ve done it before and can do it again at any moment.”
Despite the latest agreement, China has not toned down its rhetoric. Its Commerce Ministry defended the rare earth restrictions as standard international practice for dual-use (civilian and military) materials. Meanwhile, state news agency Xinhua dismissed foreign criticism as “misleading hype” and cast the export curbs as responsible policy under nonproliferation principles.
Officially, Chinese statements on the agreement have been limited. Chief negotiator Li Chenggang said only that the two sides had “agreed in principle” on a framework. Vice Premier He Lifeng called the London discussions “an important consultation” without offering further detail. Xinhua, however, published an op-ed portraying the U.S. as the loser in the ongoing trade confrontation, citing farm subsidies and business disruptions as evidence of the cost.
One Trump ally downplayed the modest gains, describing the framework as a necessary step forward. “This is a typical phase in complex trade negotiations. Incremental progress is progress nonetheless,” the person said.
Trump, eager to solidify his legacy on China, continues to seek a direct meeting with Xi. Following a recent phone call, Trump announced that he had invited Xi to the White House and planned a future visit to China as well.
Observers note that high-level talks between the two leaders may carry more weight than ongoing negotiations led by the current U.S. trade team—Treasury Secretary Scott Bessent, Jamieson Greer, and Howard Lutnick.
Without a Trump-Xi summit, many remain skeptical of the deal’s durability.
“If we don’t get that face-to-face, nothing substantial will stick,” said Derek Scissors, senior fellow at the American Enterprise Institute. “China remains assertive under Xi’s leadership, and the U.S., under Trump, remains unpredictable.”
