China and U.S. Forge New Framework for Geneva Trade Consensus After Productive London Talks

The U.S. and China are making strides in their trade relationship. After two days of high-level talks in London, U.S. Commerce Secretary Howard Lutnick announced they have a framework to address ongoing trade issues.

Lutnick’s comments came after a phone call between U.S. President Donald Trump and Chinese President Xi Jinping. This call aimed to stabilize a relationship that has been rocky due to both nations accusing each other of violating previous trade agreements.

In mid-May, during a meeting in Switzerland, the two countries agreed to pause new tariffs for 90 days and reconsider some existing measures. Lutnick stated that their next steps depend on approval from both presidents. If both agree, they will start implementing the new framework.

A crucial aspect of this agreement involves rare-earth exports from China to the U.S. Lutnick emphasized that addressing these restrictions is a key priority. In exchange, the U.S. may ease its limits on advanced technology sales to China.

Despite Lutnick’s optimism, the response from Chinese state media has been muted. While they highlighted Xi’s call with Trump, there was no immediate follow-up regarding the trade talks.

Recent studies show that U.S. companies continue to face challenges due to these trade tensions. A report by the U.S. Chamber of Commerce revealed that nearly 70% of businesses surveyed believe ongoing trade disputes are impacting their operations.

Historically, U.S.-China trade has shifted dramatically over the years. In the early 2000s, both countries saw rapid growth in trade, but tensions have escalated since then. This current agreement could potentially mark a turning point, leading to a more stable economic relationship.

As discussions continue, experts say that building trust is essential for both sides. By addressing core issues like rare-earth exports, they hope to pave the way for smoother interactions in the future.

If you’re interested in a deeper dive into trade dynamics, you can read more from the U.S. Chamber of Commerce here.

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