Senior U.S. and Chinese trade negotiators have reached an agreement to move their trade talks forward after a period of tension. This announcement came after two days of discussions in London, which concluded late Tuesday.
The focus of these meetings was on resolving issues related to mineral and technology exports that had disrupted a fragile truce established in Geneva last month. However, it remains uncertain if any advances were made regarding the larger issue of China’s significant trade surplus with the United States.
U.S. Commerce Secretary Howard Lutnick expressed optimism, stating, “First we had to get sort of the negativity out and now we can go forward.” Following the announcement, Asian stock markets saw a rise, indicating a positive reaction to the news.
These talks followed a recent phone call between President Donald Trump and Chinese President Xi Jinping, aimed at easing tensions. According to China’s official Xinhua News Agency, both sides have agreed in principle on a framework to implement the consensus reached during their phone call and at the Geneva discussions.
Details about the next steps or further meetings have not yet been disclosed. Wendy Cutler, a former U.S. trade negotiator, noted that the disputes have consumed a significant portion of the 90 days both countries have to resolve their trade issues. She pointed out that only 60 days remain to address critical topics such as unfair trade practices and excess capacity.
The Geneva talks resulted in a temporary suspension of tariffs that had been imposed during the escalating trade war. However, the World Bank has recently lowered its growth forecasts for the U.S. and global economies, citing the increase in trade barriers.
Cutler highlighted the urgency of the situation, stating, “The U.S. and China lost valuable time in restoring their Geneva agreements.” She emphasized the need to address various concerns, including unfair trade practices and the issue of fentanyl trafficking.
Since the Geneva meetings, both nations have exchanged strong words over advanced semiconductors, visa policies for Chinese students, and rare earth minerals essential for various industries. China, the leading producer of rare earths, has indicated it might expedite the issuance of export licenses for these crucial materials. In exchange, Beijing is seeking to lift U.S. restrictions on technology related to advanced semiconductors.
Lutnick mentioned that resolving the rare earths issue is a key part of the newly agreed framework, and that the U.S. would consider removing certain measures it had previously imposed. He did not specify which measures would be lifted.
Cutler remarked that it would be unusual for the U.S. to negotiate its export controls, a point of contention China has raised for nearly two decades. She warned that this could set a precedent for future negotiations.
In Washington, a federal appeals court ruled that the government can continue collecting tariffs imposed by Trump on not just China but other countries as well, while the administration appeals a previous ruling against its trade policies.
Trump has expressed a desire to “open up China” to U.S. products, emphasizing the importance of engaging with the world’s largest manufacturer. He stated, “If we don’t open up China, maybe we won’t do anything. But we want to open up China.”