Wednesday, June 11, 2025 - Top officials from the United States and China announced Tuesday, June 10, that they had reached a “framework” agreement to move forward on trade issues following two days of high-level negotiations in London. The talks, held at Lancaster House, aimed to ease tensions between the world’s two largest economies, particularly concerning export restrictions and rare earth minerals.
US Commerce Secretary Howard Lutnick expressed optimism
about resolving concerns related to rare earths and magnets, stating that
issues would likely be settled as the framework is implemented. However, the
proposed deal still requires approval from leadership in Washington and
Beijing.
The talks were closely watched globally, as both sides
worked to break a deadlock over China’s export controls. US officials have
previously accused Beijing of delaying approvals for shipments of rare earths,
which are vital for technologies such as smartphones, electric vehicles, and
green energy infrastructure.
Efforts to de-escalate the ongoing tariff war were also
central to the discussions. While existing tariffs are temporarily paused,
officials from both countries acknowledged the complexity of reaching a
long-term resolution.
“We’re moving as quickly as we can,” said US Trade
Representative Jamieson Greer, adding that both parties hoped to secure an
agreement that benefits both nations. “We feel positive about engaging with the
Chinese,” he said.
China’s International Trade Representative Li Chenggang
described the talks as “professional, rational, in-depth and candid,”
expressing hope that the progress in London would help rebuild trust.
US Treasury Secretary Scott Bessent, who co-led the US
delegation alongside Lutnick and Greer, described the discussions as
productive. Bessent left the talks early due to Congressional testimony
obligations.
China’s team was led by Vice Premier He Lifeng and included
Commerce Minister Wang Wentao and Li Chenggang. No follow-up meeting has yet
been scheduled.
Lutnick suggested that US-imposed measures tied to stalled
rare earth shipments could be lifted once Beijing expedites license approvals.
The issue had been a sticking point since temporary agreements were reached
during talks in Geneva last month.
Kevin Hassett, President Donald Trump’s top economic
adviser, said China had agreed to release rare earth supplies in exchange for
lowered tariffs, but the pace of implementation had frustrated some American
firms.
Emily Benson of Minerva Technology Futures noted that both
countries now possess a “mirror arsenal” of trade and investment measures,
warning against expecting a traditional agreement in such a high-stakes
environment. Still, she suggested incremental steps, such as China streamlining
export licenses and the US easing some high-tech export curbs, could help
prevent further deterioration.
Despite the cautious optimism, analysts remained wary.
Thomas Mathews of Capital Economics said Washington was unlikely to retreat
fully from its hardline stance, which could continue to affect market
confidence.
Since his return to office, President Trump has imposed a 10
percent tariff on numerous countries, affecting global trade. Chinese data
showed a sharp drop in exports to the US in May, further intensifying concerns.
The World Bank on Tuesday lowered its 2025 global growth
forecast, citing the uncertainty stemming from unresolved trade tensions.
Meanwhile, China is exploring alliances with countries like Japan and South
Korea in an effort to counterbalance US tariffs.
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