London– After two days of intensive negotiations, top officials from the United States and China announced Wednesday that they have agreed on a framework aimed at reviving a stalled trade truce between the world’s two largest economies. The new agreement, which builds upon an earlier consensus reached last month in Switzerland, now awaits final approval from U.S. President Donald Trump and Chinese President Xi Jinping.
The proposed framework includes commitments from both sides to reduce tariffs and restore critical exports. Notably, China has agreed to resume the export of rare earth minerals, while the U.S. is expected to ease restrictions imposed in response to China’s previous supply curbs.
U.S. Commerce Secretary Howard Lutnick said the deal is designed to rebalance trade ties between the two nations and remove recent barriers. “China’s restrictions on rare earth minerals and magnets will come off, and so will the retaliatory measures we put in place,” Lutnick told reporters. “As President Trump said, we’re moving in a balanced direction.”
China currently holds a dominant position in the global supply of rare earth elements—key components in the manufacturing of smartphones, electric vehicles, and advanced electronics. Over the past year, Beijing has wielded its near-monopoly as leverage in the ongoing trade dispute by restricting exports.
Meanwhile, the U.S. has tightened restrictions on China’s access to sensitive American technologies, particularly semiconductors and components tied to artificial intelligence development.
According to Lutnick, the breakthrough followed a recent phone call between President Trump and President Xi, which helped lay the groundwork for renewed dialogue. “We’ve reached a framework to implement the Geneva consensus and the commitments made during the June 5 phone call between the two presidents,” he said.
Chinese Vice Commerce Minister Li Chenggang echoed those sentiments, confirming that both sides had “in principle” agreed to move forward. “The two sides have reached a framework for implementing the consensus reached during the leaders’ phone call and the Geneva meeting,” Li said.
If both presidents approve the proposal, officials indicated that implementation of the new framework would begin shortly, signaling a potential de-escalation in the ongoing trade tensions that have rattled global markets and disrupted supply chains over the past two years. (Source: IANS)
