CHINA and the United States have confirmed the details of a trade deal framework they agreed earlier this month following talks in London, the Chinese Commerce Ministry announced today.

Washington will lift “restrictive measures against China” and Beijing will “review and approve applications for the export control items,” the ministry said.

US President Donald Trump said on Thursday night that the US and China had signed a trade agreement and that he expects to reach a deal with India soon. 

“We just signed with China the other day,” he said.

Commerce Secretary Howard Lutnick told Bloomberg TV that the deal had been “signed and sealed” two days earlier, adding: “The president likes to close these deals himself.”

No details of the agreement were provided by either Mr Lutnick or Mr Trump.

Also on Thursday, a White House official announced that the US had reached an agreement with China on how to speed up shipments of rare earth materials to the US.

The announcement follows initial talks between the two countries in Geneva in early May. This led both sides to postpone massive tariff increases, in an escalating spiral begun by Washington, that threatened to halt much of their bilateral trade.

Later talks in London set a framework for negotiations and the deal between China and the US appears to have formalised that agreement.

Washington has prioritised the supply of rare earth minerals, which are essential for high-tech products including electric vehicles, hard drives and advanced military equipment.

In early April, China, which dominates global production of these elements, began requiring export licences, a move widely viewed as a response to Mr Trump’s tariffs. 

The US president’s policies are taking a heavy toll on his country’s economy.

The Commerce Department reported on Thursday that the US economy had shrunk at a 0.5 per cent annual pace from January through March, which was worse than previously estimated.

First-quarter growth was weighed down by a surge of imports as US companies and households rushed to buy foreign goods before Mr Trump could impose tariffs on them.

Beijing also announced today that Chinese Foreign Minister Wang Yi would travel to Europe next week to meet his counterparts from the European Union, Germany and France.