After two days of negotiations in London, China and the United States have agreed upon a trade framework.
Li Chenggang - China’s trade negotiator - said the agreement lays out specific measures to carry out the understandings reached during the June 5 phone conversation between the two countries' leaders, as well as their meeting in Geneva last month.
US Commerce Secretary Howard Lutnick also acknowledged the progress achieved in the trade talks. He called the fresh developments an important “first step”, adding that resolving tensions between the two countries is important, as per media reports.
Furthermore, Lutnick mentioned that the understanding with China also features a plan aimed at addressing challenges tied to restrictions on rare earth elements and magnets.
Lutnick stated that resolving China’s restrictions on exports of rare earth minerals and magnets to the U.S. is a central element of the new trade agreement.
He noted that the U.S. had previously implemented certain measures in response to the export halt, but those restrictions are now expected to be lifted gradually - consistent with what U.S. President Donald Trump has described as a fair and balanced approach.
“Also, there were a number of measures the United States of America put on when those rare earths were not coming,” Lutnick stated. “You should expect those to come off, sort of as Trump said, in a balanced way,” he mentioned, as per Reuters.
He added that the direct communication between the two leaders, Trump and Chinese President Xi Jinping, helped the negotiations. “Xi and Trump’s call changed the outcome,” said Lutnick. The latest framework will also be presented to Trump by the U.S. delegation for approval.
