U.S. and China Agree to Walk Back Trade Tensions
The U.S. and China have agreed on a framework to reduce trade tensions and maintain a truce reached last month. This decision follows two days of negotiations in London and aims to address previous concerns, particularly regarding rare earth minerals. U.S. officials, including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, are optimistic about future compliance and communication between the two countries.
In a significant development, the United States and China have agreed to a framework aimed at reducing escalating trade tensions that have arisen in recent weeks. This agreement signals a commitment to uphold a trade truce established last month, as reported by officials from both nations.
Following two days of intense negotiations in London, senior economic officials from both countries are set to present this new framework to President Donald Trump and President Xi Jinping for their final endorsement. The deal seeks to reinforce the terms of an agreement initially reached in Switzerland back in May, which has seen some disintegration over the past few weeks.
Commerce Secretary Howard Lutnick, part of the negotiating team, indicated that concerns from the U.S. regarding China’s limitations on rare earth minerals and magnets have been adequately addressed. “We have reached a framework to implement the Geneva consensus,” Mr. Lutnick stated, noting that the agreement could be metaphorically described as a “handshake” between the two countries.
Moreover, he confirmed that both President Trump and President Xi will be briefed on the agreement prior to its implementation. “They were focused on trying to deliver on what President Xi told President Trump,” remarked Mr. Lutnick, suggesting that there was mutual motivation from both sides to reach a resolution.
Additionally, U.S. Trade Representative Jamieson Greer, who also participated in the negotiations, emphasized the importance of ensuring compliance with prior agreements made in Geneva concerning rare earth mineral exports and tariffs. He mentioned that both countries will maintain ongoing communication to navigate their economic disputes effectively.
In summary, the U.S. and China have reached a new framework intended to alleviate trade tensions in light of previous agreements. Following crucial negotiations, both nations aim to solidify their commitments, focusing on compliance regarding rare earth minerals. As officials prepare to brief their respective leaders, the outlook suggests a cautious yet optimistic approach to international trade moving forward.
Original Source: www.nytimes.com
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