The United States and China have agreed on a preliminary “framework” to ease trade tensions after two days of negotiations in London, officials announced Tuesday. The breakthrough follows a 90-day pause on most tariffs agreed upon last month in Geneva.
While details of the framework remain undisclosed, US Commerce Secretary Howard Lutnick said the talks addressed all major issues dividing the world’s two largest economies. He added that the framework will move forward pending approval from US President Donald Trump and Chinese President Xi Jinping, who spoke by phone last week.
“Once the presidents approve it, we will then seek to implement it,” Lutnick told reporters outside Lancaster House. He indicated that US restrictions on Chinese rare earth exports—a key sticking point—may be relaxed once supplies improve.
Chinese Vice Commerce Minister Li Chenggang described the talks as “professional, rational, in-depth and candid.” He said both sides will report back to their leaders on the progress made and the framework agreed upon in principle, expressing hope the meeting would help build trust between the two countries.
Asian stock markets responded positively to the news, with Japan’s Nikkei 225 rising nearly 0.5%, Hong Kong’s Hang Seng up about 1%, and China’s CSI 300 increasing by 0.8% as of early Wednesday trading.
The World Bank, meanwhile, lowered its global growth forecast from 2.7% to 2.3%, citing ongoing trade uncertainties.
Trade expert Deborah Elms of the Hinrich Foundation in Singapore cautioned that while the framework is a hopeful step, complex talks remain ahead. “Meeting a 90-day deadline for complex discussions was always going to be challenging,” she said. “Both sides seem committed to avoiding escalation, but the road forward will not be easy.”
Source: Al Jazeera
