Chinese shares rose on Friday as Beijing and Washington agreed to cut tariffs on agricultural products.

The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.4% higher to 4,043.64. The Shenzhen Component Index climbed 0.6% to 15,597.51.

Commerce Ministry Spokesperson He Yadong said China and the U.S. have agreed "in principle" to reduce tariffs on agricultural products following recent trade talks, with the two countries setting objectives to grow two-way agricultural trade.

Meanwhile, business activity across China's private sector rose at a softer pace in June, with the headline RatingDog China Composite Output Index, compiled by S&P Global, coming in at 53.6 from 54 the previous month.

The private service sector saw an expansion in business activity last month, with the headline RatingDog China General Services Business Activity Index coming in at 54.1. This beat the consensus forecast of 53 tracked by Investing.com, and compared with the 54.4 recorded in the previous month.

In company news, Hybio Pharmaceutical (SHE:300199) obtained domestic production approval from China's drug regulator for its liraglutide (H) injection for type two diabetes glycemic control. Shares of the pharmaceutical company closed 8% higher Friday.