According to CCTV News, on the afternoon of June 12th, the Ministry of Commerce held a regular press conference, during which reporters asked questions about the first meeting of the China US Economic and Trade Consultation Mechanism.

The spokesperson of the Ministry of Commerce, He Yadong, introduced that from June 9th to 10th local time, the China US economic and trade team held the first meeting of the China US Economic and Trade Consultation Mechanism in London, UK. Both sides have reached a principled agreement on the framework of measures to implement the important consensus reached by the two heads of state on June 5th and consolidate the achievements of the Geneva Economic and Trade Talks, and have made new progress in addressing each other's economic and trade concerns.

Next, both sides will further leverage the role of the China US economic and trade consultation mechanism, continue to maintain communication and dialogue, continuously enhance consensus, reduce misunderstandings, strengthen cooperation, and jointly promote the stable and far-reaching development of China US economic and trade relations.

Regarding the rare earth issue mentioned by the reporter, He Yadong stated that as a responsible major country, China fully considers the reasonable needs and concerns of various countries in the private sector, reviews export license applications for rare earth related items in accordance with laws and regulations, has approved a certain number of compliance applications in accordance with the law, and will continue to strengthen the approval process for compliance applications.

According to public media reports, China and the United States will hold economic and trade consultations in London on June 9-10, 2025. After two days of intense negotiations, the two sides have reached a framework agreement in principle. The core content includes:

Rare earth field: China moderately adjusts rare earth export controls to alleviate pressure on the US military and automotive industries (such as the rising cost of Tesla electric vehicle batteries);

Chip field: The US has relaxed export restrictions on some chips and equipment (such as process equipment below 14 nanometers and jet engine parts), but explicitly excludes high-end AI chips such as Nvidia H20; Kevin Hassett, Director of the National Economic Council of the United States, emphasized that relaxing export controls on semiconductors is not a "very, very high-end Nvidia chip", and Nvidia's H20 is not an option under consideration.

Tariff adjustment: Both sides will cancel the 91% tariff, suspend the 24% tariff for 90 days, and retain 10% as a firewall for sensitive areas.

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