US and China Forge New Trade Framework Amid Ongoing Disputes
Negotiators Reach Agreement in London
London: Senior officials from the United States and China have successfully established a framework aimed at revitalizing their trade discussions, which had recently faced significant challenges, as confirmed by both parties.
This announcement followed two days of negotiations in London, concluding late Tuesday.
The discussions primarily concentrated on resolving issues related to mineral and technology exports, which had previously disrupted a delicate trade truce established in Geneva last month. However, it remains uncertain if any advancements were made regarding the substantial trade surplus China holds over the United States.
US Commerce Secretary Howard Lutnick remarked to the press, "Initially, we needed to eliminate the negativity, and now we can progress forward."
Following the announcement, Asian stock markets experienced an uptick on Wednesday.
These talks were preceded by a phone conversation between President Donald Trump and Chinese President Xi Jinping last week, aimed at easing tensions.
Li Chenggang, China's international trade representative and vice minister of commerce, indicated that both nations had reached a preliminary agreement on a framework to implement the consensus from their phone call and the Geneva discussions, as reported by the official Xinhua News Agency.
Details regarding any future negotiations were not immediately disclosed.
Li and Wang Wentao, China's commerce minister, were part of the delegation led by Vice Premier He Lifeng, who met with Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer at Lancaster House, a historic mansion near Buckingham Palace.
Wendy Cutler, a former US trade negotiator, noted that the disputes had consumed 30 of the 90 days allocated for resolving these issues.
In Geneva, both sides had agreed to a 90-day suspension of most tariffs exceeding 100 percent that they had imposed on each other during an escalating trade conflict that raised recession fears. The World Bank recently downgraded its growth forecasts for the US and global economies due to rising trade barriers.
Cutler stated, "The US and China have wasted valuable time in reinstating their Geneva agreements. Now, only sixty days remain to tackle pressing issues, including unfair trade practices, excess capacity, transshipment, and fentanyl."
Since the Geneva discussions, the US and China have exchanged heated remarks regarding advanced semiconductors essential for artificial intelligence, visa policies for Chinese students in the US, and rare earth minerals crucial for various industries.
China, being the largest producer of rare earths globally, has indicated it may expedite the issuance of export licenses for these materials. In return, Beijing seeks the US to lift restrictions on Chinese access to technology for manufacturing advanced semiconductors.
Lutnick emphasized that addressing the rare earths issue is a core component of the agreed framework, stating that the US would retract certain measures it had previously imposed, although he did not specify which ones.
"Once they approve the licenses, you can expect our export implementation to decrease as well," he added.
Cutler remarked that it would be unprecedented for the US to negotiate its export controls, which have been a point of contention for China for nearly two decades.
"By doing so, the US has opened a door for China to insist on including export controls in future negotiations," she noted.
In Washington, a federal appeals court ruled on Tuesday that the government could continue collecting tariffs imposed by Trump, not only on China but also on other nations, while the administration appeals a ruling against its key trade policy.
Trump previously expressed his desire to "open up China," the world's leading manufacturer, to US products.
"If we don't open up China, we might not achieve anything," Trump stated at the White House.