US and China Agree on Trade Framework After Two Days of Talks in London

The U.S. and China have reached a trade framework agreement after two days of negotiations in London. Both sides will now seek approval from their respective leaders, with key issues like tariffs and rare earth minerals addressed. This progress follows a phone call between President Trump and President Xi to ease prior tensions.

The United States and China seem to be inching closer to each other on trade issues, having hammered out a new framework following two days of discussions in London. Li Chenggang, China’s chief negotiator, shared this news with reporters on Wednesday via Chinese state broadcaster CGTN. He noted that both sides reached an agreement in principle regarding a trade framework, which will help implement discussions initiated during phone calls between the two nations’ leaders in early June and at talks in Geneva last month.

U.S. Commerce Secretary Howard Lutnick also weighed in, indicating that the proposal born from these negotiations will now be presented to the respective leaders for their thumbs up. “The idea is we’re going to go back and speak to President Trump and make sure he approves it… they’re going to go back and speak to President Xi and make sure he approves it,” Lutnick stated during his own briefing. If both leaders give their blessing, implementation of the framework will follow.

These latest negotiations wrapped up recently, coming right after a discussion between President Trump and Chinese President Xi Jinping aimed at de-escalating growing trade tensions. The atmosphere was indeed optimistic at the outset; however, it seems some friction developed afterward. Key disagreements arose over areas like China’s control of rare earth minerals and American semiconductor technology.

Reports suggest that Lutnick maintained that China’s restrictions on exports of these rare earth materials to the U.S. are viewed as a crucial issue to resolve within the framework agreement. He underscored that previous measures imposed by the U.S. in response to such exports would likely be lifted, as President Trump hinted might happen, although he stressed that this would be in a balanced manner.

As the situation unfolds, CNN has reached out to the White House for more details and comments on the negotiations. This is indeed a developing story, and it sounds like there will be more updates as the U.S. and China continue to navigate these complex trade waters.

In summary, after two days of negotiations in London, the U.S. and China have come to an agreement on a trade framework. This framework will address key issues including tariff reductions and the critical matters surrounding rare earth minerals. The proposal will be brought back to both President Trump and President Xi for approval. As developments unfold, the situation remains fluid, but the talks mark a step toward improved trade ties between the two nations.

Original Source: www.cnn.com

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