US and China sign trade deal, agreeing rare earth access and student visas for Chinese nationals

US and China Sign Key Trade Deal Covering Rare Earths and Student Visas

US and China sign trade deal, agreeing rare earth access and student visas for Chinese nationals The new trade agreement that secures US access to rare earth minerals and relaxes restrictions on Chinese student visas, President Donald Trump confirmed Thursday. The deal marks a rare moment of cooperation between the two global powers amid years of escalating tensions over trade, technology, and national security.

Commerce Secretary Howard Lutnick told Bloomberg TV that the agreement was “signed and sealed” earlier this week, but specific terms have not yet been released publicly. Trump simply noted, “We just signed with China the other day,” without providing further detail.

Rare Earths and High-Tech Industry Relief

The agreement appears to expand on a previous pact Trump mentioned two weeks ago, aimed at easing US access to rare earth minerals—critical components used in electric vehicles, smartphones, wind turbines, and military technologies.

These minerals have long been at the center of trade disputes, as China controls more than 70% of global production. In April, Beijing imposed new export permitting rules on seven key rare earth elements, triggering fears of global supply disruptions and heightening tensions with Washington.

In response, the US had been pushing for direct guarantees on continued access to rare earths and had threatened retaliatory measures, including increased tariffs.

China Responds with Regulatory Flexibility

In a statement on Friday, China’s Commerce Ministry acknowledged that the two sides had “further confirmed the details of the framework” but did not explicitly reference rare earths. However, the ministry added that China would approve “controlled items that meet the conditions in accordance with the law,” suggesting that rare earth export licenses could now be processed more swiftly.

China also noted that the US had agreed to cancel “a series of restrictive measures” against Chinese entities, although no list was provided. The statement emphasized a need for mutual cooperation: “It is hoped that the United States and China will meet each other halfway.”

Student Visas Secured for Chinese Nationals

A key provision in the deal also involves student visa protections. The US agreed to halt efforts to revoke or limit the visas of Chinese nationals studying at American universities. This is seen as a significant concession from Washington, especially after months of growing concerns over alleged intellectual property theft and national security risks associated with Chinese students in STEM fields.

The visa issue had become a flashpoint in bilateral relations, affecting thousands of students and sparking debate within the academic and diplomatic communities.

From Tariffs to Diplomacy: A Shift in Tone

The agreement follows a series of high-level negotiations held in Geneva in May and London in early June, which led both countries to postpone steep tariff increases and instead focus on regulatory and export-related disputes. The deal Trump referenced is seen as the formal outcome of those talks.

Commerce Secretary Lutnick praised Trump’s approach, saying, “The president likes to close these deals himself. He’s the dealmaker. We’re going to have deal after deal.”

While the full scope of the agreement remains under wraps, analysts suggest the focus has shifted from punitive tariffs to more targeted negotiations on supply chains and critical minerals.

Progress on Fentanyl Trafficking Also Noted

In a related development, China also moved to regulate two additional fentanyl precursor chemicals, a step welcomed by Washington. Trump had previously imposed 20% tariffs on Chinese goods in connection with Beijing’s alleged failure to curb fentanyl trafficking, part of broader 30% tariffs targeting a wide range of Chinese imports.

These steps indicate growing efforts by both sides to manage and resolve key issues that have plagued their relationship in recent years.

Looking Ahead: Future Trade Talks with India?

Trump hinted that a similar trade deal with India may soon follow. “We’re going to have deal after deal,” he said, signaling continued focus on reshaping global trade relations during the remainder of his term.

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