Top officials underscore the urgency of resolving trade tensions over rare earth minerals and tariffs.
**US-China Trade Talks Yield Framework for Approval by Trump and Xi**
**US-China Trade Talks Yield Framework for Approval by Trump and Xi**
Negotiators from the US and China agree on a trade de-escalation plan to be sent to their presidents for approval.
The US and China concluded two days of intensive discussions in London, reaching an agreement in principle aimed at alleviating trade disputes between the two economic superpowers. US Commerce Secretary Howard Lutnick announced that the proposed framework focuses mainly on regulating rare earth minerals and magnets—a critical component in various modern technologies.
This agreement comes in the wake of heightened tensions, as both nations have previously accused each other of failing to uphold terms of a temporary trade truce established last month. China, facing restrictions on its exports of rare earth metals essential for electronics and vehicles, was notably under scrutiny during these talks.
During the negotiations, the two sides affirmed their commitment to take this framework to their respective leaders—President Donald Trump and President Xi Jinping—for final endorsement. The collaborative efforts were described as a follow-up to a recent phone conversation between Trump and Xi, which Trump characterized as a "very good talk."
Chinese exports of rare earth elements were a priority on the negotiating table, as both nations work to implement agreements made during a previous summit in Geneva, following their last discussions on these issues. "We have reached a framework to implement the Geneva consensus," Lutnick told the press.
Historically, the US has enacted significant tariffs on various imports from China—escalating to 145%—in retaliation for perceived trade violations, spurring a chain reaction of similar increases by China. In a notable shift, May's diplomatic negotiations led to a temporary reduction in tariffs, but both countries have since accused each other of breaching the non-tariff commitments established.
Additionally, US Trade Representative Jamieson Greer expressed concerns that China had not adhered to commitments regarding rare earth magnet exports, while China retaliated with claims about the US blocking crucial sales to Chinese tech firms.
Ahead of the recent negotiations, the Chinese Ministry of Commerce indicated it had approved some export licenses for rare earth minerals, although specific details remained undisclosed. Trump's announcement that Xi had agreed to restart trade in these materials reflects a potential thaw in relations, as both sides grapple with the intricacies of their intertwined economies.
This agreement comes in the wake of heightened tensions, as both nations have previously accused each other of failing to uphold terms of a temporary trade truce established last month. China, facing restrictions on its exports of rare earth metals essential for electronics and vehicles, was notably under scrutiny during these talks.
During the negotiations, the two sides affirmed their commitment to take this framework to their respective leaders—President Donald Trump and President Xi Jinping—for final endorsement. The collaborative efforts were described as a follow-up to a recent phone conversation between Trump and Xi, which Trump characterized as a "very good talk."
Chinese exports of rare earth elements were a priority on the negotiating table, as both nations work to implement agreements made during a previous summit in Geneva, following their last discussions on these issues. "We have reached a framework to implement the Geneva consensus," Lutnick told the press.
Historically, the US has enacted significant tariffs on various imports from China—escalating to 145%—in retaliation for perceived trade violations, spurring a chain reaction of similar increases by China. In a notable shift, May's diplomatic negotiations led to a temporary reduction in tariffs, but both countries have since accused each other of breaching the non-tariff commitments established.
Additionally, US Trade Representative Jamieson Greer expressed concerns that China had not adhered to commitments regarding rare earth magnet exports, while China retaliated with claims about the US blocking crucial sales to Chinese tech firms.
Ahead of the recent negotiations, the Chinese Ministry of Commerce indicated it had approved some export licenses for rare earth minerals, although specific details remained undisclosed. Trump's announcement that Xi had agreed to restart trade in these materials reflects a potential thaw in relations, as both sides grapple with the intricacies of their intertwined economies.
