The United States and China have reached a significant milestone in their trade negotiations, agreeing on a framework after two days of intense talks in London. Chinese Vice Commerce Minister Li Chenggang announced the development, stating that the framework will implement the consensus reached by the heads of state during a June 5 phone call and the agreement finalized in Geneva.
Key Highlights of the Agreement:
– Trade Framework: A tentative framework has been established to guide future trade relations between the two nations.
– Rare Earth Exports: China has agreed to resume rare earth and magnet exports to the US, addressing a long-standing issue.
– Tariff Reduction: The agreement builds on the Geneva consensus, which saw a reduction in US tariffs on Chinese goods from 145% to 30% and China’s tariffs on US imports from 125% to 10%.
Reaction from Both Sides:
– US Commerce Secretary Howard Lutnick: Described the Chinese restrictions on rare earth exports as a “fundamental component” of the recent agreement, expressing optimism about resolving the issue.
– President Donald Trump: Characterized the talks as reaching a “very positive conclusion”.
– Chinese Negotiator: Stated that the framework will be presented to their respective national leaders for final approval.
The agreement marks a crucial step in stabilizing the economic ties between the two nations, which have been strained due to the ongoing trade war. However, the final sign-off from President Trump and President Xi Jinping is still awaited.