High-ranking negotiators from the United States and China have reportedly finalized a framework intended to facilitate ongoing trade discussions, as revealed by Chinese state media on Wednesday. This development comes after a two-day meeting in London that concluded late Tuesday, amidst ongoing disputes that jeopardized the fragile truce established in Geneva just weeks prior.
In response to the rising tensions, U.S. President Donald Trump and Chinese President Xi Jinping had a phone conversation last week aimed at easing the situation. Li Chenggang, China's vice minister of commerce and international trade representative, indicated that both parties reached an agreement in principle regarding how to implement the consensus from their discussions in Geneva, according to the official Xinhua News Agency. However, specifics regarding the next steps or further negotiations remain unclear.
Li and Wang Wentao, China's commerce minister, were part of the delegation led by Vice Premier He Lifeng, which met with senior U.S. officials including Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent at Lancaster House, a historic venue in London. Wendy Cutler, a former U.S. trade negotiator, noted that the recent disputes have consumed 30 of the 90 days allocated for resolving these trade differences under the temporary suspension of tariffs imposed by both countries. According to her, only 60 days remain to address critical trade issues such as unfair practices and excess production capacity.
Since the Geneva meetings, both nations have exchanged heated rhetoric over critical subjects, including advanced semiconductors used in artificial intelligence, visa policies for Chinese students, and restrictions on rare earth minerals essential for various industries. Fortunately, recent signals from China suggest a potential easing of export limits on rare earth elements introduced earlier in the year, which have raised concerns among global automakers. Similarly, China expects the U.S. to reconsider its technological export controls, a point of contention that has troubled negotiations for nearly two decades.
Cutler emphasized that it would be unprecedented for the U.S. to agree to negotiate on export controls, which could provide China with leverage to include this topic in future discussions. President Trump has expressed a desire to encourage trade with China, emphasizing the need to “open up” the manufacturing giant to U.S. products to foster greater economic collaboration.
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