LONDON — Senior negotiators from the United States and China have reached a framework agreement to steer their trade discussions back on course following various disagreements that threatened their progress, as representatives from both nations have confirmed. This development was announced after two days of meetings concluded on Tuesday in the British capital.
These talks appeared to center on resolving conflicts over mineral and technology exports, which had previously disrupted a fragile trade truce established in Geneva last month. However, it remains uncertain whether advancements were made in addressing the larger issue of China’s significant trade surplus with the United States.
“Initially, we needed to clear the air, and now we can proceed,” stated U.S. Commerce Secretary Howard Lutnick to reporters after the meetings concluded.
Following the announcement, Asian stock markets experienced a rise on Wednesday. The discussions took place after a phone conversation between President Donald Trump and Chinese leader Xi Jinping the previous week aimed at diffusing tensions.
Chinese commerce vice minister and international trade representative Li Chenggang stated that both parties had provisionally agreed on a framework to execute the consensus from the phone call and discussions in Geneva, as reported by the official Xinhua News Agency. However, further details regarding the framework, including potential plans for subsequent talks, have yet to be disclosed.
The Chinese delegation, headed by Vice Premier He Lifeng, included Commerce Minister Wang Wentao and Li Chenggang. They engaged in negotiations with Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer at Lancaster House, a historic mansion situated near Buckingham Palace.
According to Wendy Cutler, a former U.S. trade negotiator, the disputes have consumed a third of the 90-day period allocated for resolving their issues. This period was agreed upon in Geneva to suspend most of the punitive tariffs, which had exceeded 100% and fueled fears of a recession. Recently, the World Bank downgraded U.S. and global economic growth projections, citing increased trade barriers as a contributing factor.
“The U.S. and China have lost crucial time in advancing their Geneva agreements,” Cutler expressed. She now serves as vice president at the Asia Society Policy Institute. “Only sixty days remain to tackle critical concerns, including unfair trade practices, excessive capacity, transshipment, and fentanyl.”
Since the Geneva agreements, tensions between the two countries have flared over advanced semiconductors integral to artificial intelligence, visas for Chinese students in the U.S., and essential rare earth minerals for automotive and other industries. China, the leading rare earth producer, indicated a potential acceleration in processing export licenses for these minerals, while Beijing desires the U.S. to lift restrictions on technology essential for manufacturing advanced semiconductors.
Lutnick emphasized that resolving the rare earth issue is crucial within the agreed framework, suggesting that the U.S. will retract certain measures it had previously enacted as a response. However, he did not specify the measures to be rescinded.
“Upon the licenses’ approval, you can anticipate a reduction in our export implementation steps,” Lutnick remarked.
Cutler noted that it would be unprecedented for the U.S. to negotiate on its export controls, which she termed a longstanding concern for China for nearly two decades. “This move has opened a channel for China to propose the inclusion of export controls in future negotiations,” she added.
In Washington, a federal appeals court granted permission on Tuesday for the government to continue collecting tariffs imposed by Trump, not only on China but on other nations worldwide as the administration challenges a ruling against his prominent trade policy.
President Trump has previously expressed his desire to “open up China,” emphasizing the importance of accessing the world’s preeminent manufacturing market for U.S. products.
“If China isn’t opened up, we might not proceed with anything,” Trump commented at the White House, underscoring the significance of gaining access to China.