US-China Agree on ‘Framework’ on Trade After Talks in London

Wednesday 11 June 2025 - 07:30

By: Zahouani Ilham

US-China Agree on ‘Framework’ on Trade After Talks in London

The United States and China have reached a preliminary agreement on trade following two days of discussions in London aimed at easing tensions between the two nations.

While the details of the framework, announced on Tuesday, remain vague, this development comes a month after both countries agreed to a 90-day pause on most tariffs during talks in Geneva.

US Commerce Secretary Howard Lutnick stated that both parties would work towards implementing the “Geneva consensus” and have thoroughly addressed the key issues separating the world’s largest economies. He mentioned that the framework awaits approval from US President Donald Trump and Chinese President Xi Jinping, who recently held a 90-minute phone conversation regarding trade.

Lutnick suggested that US measures taken in response to a decline in Chinese exports of rare earth minerals may be relaxed as supplies of these essential resources increase.

Chinese Vice Commerce Minister Li Chenggang described the discussions as “professional, rational, in-depth, and candid.” He indicated that both sides would report back to their respective leaders on the outcomes of the meeting and the agreed-upon framework.

Li expressed hope that the progress made during the London meeting would help build trust between China and the United States.

Asian stock markets responded positively, reflecting optimism about a reduction in trade tensions that have affected the global economy. The World Bank recently revised its global growth forecast from 2.7% to 2.3%, citing ongoing trade uncertainties.

Japan’s Nikkei 225 saw an increase of nearly 0.5%, while the Hang Seng in Hong Kong and the CSI 300 in mainland China rose by approximately 1% and 0.8%, respectively.

Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, noted that meeting a 90-day deadline for complex discussions was always going to be difficult. She mentioned that after two rounds of intense negotiations, both sides appear committed to avoiding further