The United States and China have tentatively established a framework aimed at reducing trade tensions between the two nations, marking a significant diplomatic development. Commerce Secretary Howard Lutnick announced that the agreement is expected to address concerns over rare earth minerals and magnets, critical for modern technology.
Following two days of negotiations in London, officials from both sides are set to present the plan to Presidents Donald Trump and Xi Jinping for their endorsement. This initiative comes after a previous temporary truce, wherein both countries accused one another of violating the terms.
U.S. authorities pointed out that China has been sluggish in resuming exports of essential rare earth metals for manufacturing sectors, while the U.S. has imposed restrictions on key technologies such as semiconductors aimed at China.
According to Lutnick, the agreement aligns with discussions from a recent phone call between Trump and Xi, laying the groundwork for implementing the Geneva consensus reached earlier. Despite earlier progress, both nations have reported breaches of non-tariff conditions and expressed dissatisfaction over each other’s adherence to the truce.
As negotiations continue, the Chinese Commerce Ministry indicated that it has begun approving certain rare earth export licenses. Meanwhile, Trump reported that Xi has expressed willingness to recommence trade in rare earth materials. This evolving situation illustrates the complexities of U.S.-China relations and the continual adjustments both parties must navigate to mitigate trade disparities.
Source: www.bbc.com
