US and China Agree on Strategic Trade Framework Following Landmark London Negotiations
LONDON:
The United States and China have agreed on a strategic trade “framework” following two days of intensive high-level talks in London, signaling a major step forward in efforts to ease long-standing trade tensions between the world’s two largest economies.
US Commerce Secretary Howard Lutnick announced on Tuesday that substantial progress had been made on issues including the export of rare earth minerals and high-tech magnets, with expectations that outstanding concerns “will be resolved” during the framework’s implementation phase.
The agreement, reached at the historic Lancaster House, is pending approval by top leadership in both Washington and Beijing. The deal marks a pivotal shift after months of strained relations and stalled negotiations due to mutual accusations over export restrictions and tariff policies.
“We’re moving as quickly as we can,” said US Trade Representative Jamieson Greer, underscoring the urgency and complexity of the discussions. “We would very much like to find an agreement that makes sense for both countries.”
On the Chinese side, Vice Premier He Lifeng led the delegation alongside International Trade Representative Li Chenggang and Commerce Minister Wang Wentao. Li called the dialogue “professional, rational, in-depth and candid,” expressing confidence in enhanced mutual trust.
A key point of discussion was China’s export of rare earth elements, vital for industries ranging from green technology to defense systems. The US hinted at lifting measures imposed earlier if China increases license approvals for these crucial materials.
The talks follow a temporary agreement to ease tariffs reached in Geneva last month and reflect a mutual interest in avoiding further economic confrontation. Though no follow-up meeting has been scheduled, both sides expressed intent to maintain open lines of communication.
US Treasury Secretary Scott Bessent, who co-led the delegation, departed early due to Congressional commitments but described the talks as “productive.”
With global markets closely watching, Wall Street responded positively, buoyed by hopes of a durable trade détente. As Beijing and Washington now review the proposed framework internally, the world awaits the next chapter in this critical economic relationship.
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