US and Chinese officials have wrapped up two days of talks in London, where they reached a preliminary agreement aimed at easing trade tensions between the two countries. The discussions focused primarily on the trade of rare earth minerals, which are vital for many modern technologies, including smartphones and electric vehicles.
US Commerce Secretary Howard Lutnick announced that the framework agreed upon should help resolve existing restrictions on these crucial materials. Both sides plan to take this agreement to their respective leaders, President Donald Trump and President Xi Jinping, for final approval.
The meetings come after a brief truce in trade tariffs that had been established last month. However, both nations have accused each other of not adhering to the terms of that agreement. The US claims that China has been slow to release exports of rare earth metals, while China argues that the US has restricted access to essential technologies, including semiconductors.
Lutnick emphasized the importance of the talks, stating, "We have reached a framework to implement the Geneva consensus." He noted that once the presidents approve the plan, they will begin the process of putting it into action.
The discussions were also influenced by a recent phone call between Trump and Xi, which Trump described as a "very good talk." China’s Vice Commerce Minister, Li Chenggang, echoed this sentiment, stating that both sides have, in principle, reached a framework based on their earlier discussions.
Rare earth minerals were a significant topic during the negotiations, as they are critical for various industries. The US has expressed concerns about China’s control over these resources, which has led to increased scrutiny and restrictions on trade.
In the past, the trade relationship between the US and China has been marked by escalating tariffs and retaliatory measures. Earlier this year, Trump imposed sweeping tariffs on imports from several countries, with China being particularly affected. The situation escalated to a peak where tariffs reached as high as 145%.
The recent talks in London represent a cautious step forward in what has been a turbulent trade relationship. Both countries are hopeful that with the agreement in place, they can begin to mend their economic ties and foster a more stable trading environment.