Nearshore News: China Trade Deal Uncertainty, GE Reshoring Move, and H&M Strategy

As Washington and Beijing announce a new trade agreement, the details remain vague—and China’s continued restrictions on rare earth exports raise fresh doubts. Meanwhile, GE Appliances makes a major reshoring move with a $490 million investment in Kentucky. At the same time, H&M braces to stay competitive amid rising apparel costs.

Nearshore News Summary:

• China and the U.S. have confirmed a new trade deal, though details remain undisclosed. (CNBC) 
• Two weeks after pledging to ease restrictions, Chinese authorities continue to delay and reject rare-earth magnet export licenses to Western companies. Many of them now believe the export limitations are here to stay and are exploring workarounds. (WSJ)
• Major reshoring move: GE Appliances is investing $490 million to relocate washing machine production from China to Kentucky, creating 800 new jobs. (Associated Press)
• As tariffs raise clothing costs, H&M is working to stay competitive by leveraging flexible sourcing, enhancing in-store tech, and preparing for increased discounting to meet price-sensitive consumer demand. (The Guardian)

China, U.S. confirm details of their trade deal, Beijing says

Published: June 27, 2025
Source: CNBC

China and the U.S. have confirmed the details of a new trade framework aimed at stabilizing their economic relationship, with China agreeing to review export applications for controlled items and the U.S. pledging to lift a range of restrictions. The agreement seeks to ease tensions, but uncertainty remains over how much access will actually improve—particularly for rare earth exports.

Key points: 

• Trade deal confirmed: China and the U.S. have agreed on a trade implementation framework, following talks in London and building on the earlier Geneva consensus.
• Export reviews and restrictions eased: China will begin reviewing export applications for sensitive goods, while the U.S. will roll back certain restrictions on Beijing—though neither side disclosed full details.
• Rare earths remain a sticking point: Analysts warn that, despite the agreement, clarity is lacking on whether China’s export curbs—especially beyond magnets—will meaningfully loosen.
• Strategic goods still sensitive: Rare earths are seen as vital to national security, meaning trade in these sectors is likely to remain limited despite the broader agreement.

China Is Still Choking Exports of Rare Earths Despite Pact With U.S.

Published: June 26, 2025
Source: WSJ

Despite a recent U.S.-China agreement to ease export restrictions, Chinese authorities continue to delay and reject rare-earth magnet export licenses to Western companies, raising fears of prolonged supply shortages and renewed trade tensions. The bottlenecks have forced manufacturers to scramble for alternatives and pay premiums to avoid costly shutdowns.

Key points:

• China’s delays persist despite trade deal: Two weeks after pledging to ease restrictions, China is still slow-walking rare-earth magnet export licenses, leaving Western manufacturers in limbo.
• Factories face costly shortages: Companies like Ford are scrambling to avoid production shutdowns, sometimes resorting to expensive airfreight to secure limited supplies.
• Export licenses demand sensitive info: Chinese authorities are requiring detailed disclosures—including customer contacts and design specs—which many firms are reluctant to share.
• Favoritism in approvals: State-connected Chinese magnet producers are getting licenses faster than private companies, further disrupting supply predictability.
• Long-term restrictions feared: Despite public assurances, many Western companies now believe the export limitations are here to stay—and are exploring workarounds.

GE Appliances moves washing machine production from China to Kentucky with $490 million investment

Published: June 26, 2025
Source: Associated Press

GE Appliances is investing $490 million to relocate washing machine production from China to its Louisville, Kentucky facility, creating 800 new jobs. The move aligns with the company’s U.S.-focused manufacturing strategy and comes amid U.S. tariff policies aimed at encouraging reshoring.

Key points:

• Major reshoring move: GE Appliances will shift production of over 15 washer models from China to its Louisville headquarters.
• $490 million investment: The new project will expand the facility by the equivalent of 33 football fields and create 800 new jobs by 2027.
• Strategic U.S. focus: The move supports GE Appliances’ “zero-distance” strategy to manufacture closer to consumers and designers, leveraging U.S.-based talent and infrastructure.
• Tech-forward factory: The redesigned plant will be the company’s most advanced, featuring automation, robotics, and autonomous mobile robots for material handling.
• Part of broader trend: The investment adds to GE Appliances’ $3.5 billion in U.S. manufacturing spending over the past decade, reinforcing a national shift toward domestic production amid rising tariffs.

Clothing prices rising in US as Trump tariffs kick in, H&M boss says

Published: June 27, 2025
Source: The Guardian

As U.S. tariffs raise clothing costs, H&M is working to stay competitive by leveraging flexible sourcing, enhancing in-store tech, and preparing for increased discounting to meet price-sensitive consumer demand.

Key points:

• Flexible Sourcing Advantage: H&M is using its wide network of global suppliers to shift production and reduce the impact of U.S. tariffs.
• Tech-Driven Cost Management: The retailer is increasing its use of self-checkouts and RFID tags to streamline operations and offset rising wages and logistics costs.
• Aggressive Discounting Ahead: Shoppers are highly price-sensitive amid inflation and economic uncertainty. To maintain sales, H&M plans more markdowns globally.
• Store Strategy Shift: H&M will close 200 stores this year but is opening 80 new locations, including first-time entries in Brazil and Venezuela.
• Staying Competitive: Despite margin pressures, H&M is doubling down on price, fashionability, and sustainability to stand out from competitors in a turbulent market.