The U.S. and China are expediting the rollout of a new trade framework, with Washington lifting export restrictions on key goods and Beijing easing rare-earth controls, signaling a significant shift in the economic ties between the world’s two largest economies.

Trade Thaw Gains Momentum

China’s Ministry of Commerce announced on July 4 that American officials have begun lifting “a series of restrictive measures” against Chinese products. The move is part of the initial implementation phase of a trade deal struck in London earlier this year.

Chinese officials cited recent notifications received by several firms—including Synopsys and Cadence Design Systems in the U.S., and Germany’s Siemens—authorizing them to resume exports of chip-design software to China. The U.S. Department of Commerce’s Bureau of Industry and Security reportedly issued the updated guidance.

Rare-Earth Concessions from Beijing

In a reciprocal move, China agreed to ease its own export curbs on rare-earth elements, a category of materials essential for advanced technologies like semiconductors, electric vehicles, and military hardware.

The Chinese commerce ministry confirmed that it is actively reviewing and approving applications for exports of controlled items to the U.S., a gesture interpreted as a major step toward trust-building in a strained bilateral relationship.

Signs of Easing Tensions

The joint moves represent one of the clearest signs of a shift toward economic detente after years of tariff wars, export controls, and geopolitical disputes. Both sides appear keen to stabilise trade amid rising global economic uncertainty.

While neither government has yet published full details of the “London Framework,” the reciprocal easing of controls on advanced technologies and resources indicates that both Washington and Beijing are prioritising strategic trade balance and supply chain security.