The three are Mark Swidan, Kai Li and John Leung, all of whom had been designated by the US government as wrongfully detained by China. Swidan had been facing a death sentence on drug charges while Li and Leung were imprisoned on espionage charges.
"Soon they will return and be reunited with their families for the first time in many years," the White House said in a statement.
The release comes two months after China freed David Lin, a Christian pastor from California who had spent nearly 20 years behind bars after being convicted of contract fraud.
US-China relations have been roiled for years over major disagreements on trade, human rights, the production of fentanyl precursors, security issues that include espionage and hacking, China's aggressiveness toward Taiwan and its smaller neighbours in the South China Sea, and Beijing's support for Russia's military-industrial sector.
The release of Americans deemed wrongfully detained in China has been a top agenda item in each conversation between the US and China. The development suggests a willingness by Beijing to engage with the outgoing Democratic administration before Republican President-elect Donald Trump's return to the White House in January.
Trump took significant actions against China on trade and diplomacy during his first term. He has pledged to continue those policies in his second term, leading to unease among many who fear that an all-out trade war will greatly affect the international economy and could spur potential Chinese military action against Taiwan.
The State Department on Wednesday lowered its travel warning to China to "level two," advising US citizens to "exercise increased caution" from the norm when travelling to the mainland. The alert had previously been at "level three," telling Americans they should "reconsider travel" to China in part because of the "risk of wrongful detention" of Americans.
The new alert retains a warning that the Chinese government "arbitrarily enforces local laws, including exit bans on US citizens and citizens of other countries, without fair and transparent process under the law."
The White House has not confirmed whether any Chinese citizens in American custody had been returned home in a prisoner swap.
Senators from both political parties praised the move. Republican Senator Ted Cruz of Texas, where Swidan's mother lives, said he was "overjoyed" and credited senior Biden administration officials for having "worked tirelessly to secure this achievement."Â
Li, a Chinese immigrant who started an export business in the US and lived in New York, was detained in September 2016 after flying into Shanghai. He was placed under surveillance, interrogated without a lawyer and accused of providing state secrets to the FBI. A UN working group called his 10-year prison sentence arbitrary and his family has said the charges were politically motivated.
Leung was sentenced last year to life in prison on spying charges. He was detained in 2021, by the local bureau of China's counterintelligence agency in the southeastern city of Suzhou after China had closed its borders and imposed tight domestic travel restrictions and social controls to fight the spread of COVID-19.
Swidan had been jailed for the last 12 years on a drug charge and, along with Li and Leung, was considered by the State Department to be wrongfully detained.