The two nations' economic officials have agreed to modify restrictive trade measures, with plans to reinstate a previous agreement that had been disrupted.
U.S. and China Forge New Trade Agreement Amid Heightened Tensions
U.S. and China Forge New Trade Agreement Amid Heightened Tensions
After extended negotiations, the United States and China have reached a new trade framework aimed at restoring their economic relations.
Article Text:
The United States and China have come to a consensus to ease certain trade restrictions and reinstate a truce initially established in May, officials disclosed on Tuesday. Following two days of intense discussions in London, leading economic representatives from both countries are set to present the newly crafted “framework agreement” to President Trump and China’s Xi Jinping for final endorsement.
While full details of the accord remain undisclosed, the focus is on reverting to the trade terms negotiated in Switzerland the previous month. The earlier agreement fell apart in recent weeks, particularly due to China maintaining restrictions on key shipments of rare earth minerals and magnets, fundamental for U.S. manufacturing.
Howard Lutnick, the U.S. Commerce Secretary who participated in the negotiations, informed reporters that issues regarding China's export limitations on specific minerals had been addressed. He highlighted that the U.S. would reciprocate by rolling back its own measures against Chinese imports "in a balanced manner."
In an attempt to apply pressure amid escalating trade issues, U.S. officials had restricted the export of a variety of American products and technologies, which included chemicals, airplane components, and software, along with proposing bans on Chinese students’ enrollment in U.S. universities.
According to a source familiar with the negotiations, which was not authorized to comment publicly, the Chinese delegation committed to resuming shipments of rare earths to the U.S. In response, the U.S. is set to lift export controls on Chinese products implemented after the Geneva talks, with both actions occurring concurrently.
The United States and China have come to a consensus to ease certain trade restrictions and reinstate a truce initially established in May, officials disclosed on Tuesday. Following two days of intense discussions in London, leading economic representatives from both countries are set to present the newly crafted “framework agreement” to President Trump and China’s Xi Jinping for final endorsement.
While full details of the accord remain undisclosed, the focus is on reverting to the trade terms negotiated in Switzerland the previous month. The earlier agreement fell apart in recent weeks, particularly due to China maintaining restrictions on key shipments of rare earth minerals and magnets, fundamental for U.S. manufacturing.
Howard Lutnick, the U.S. Commerce Secretary who participated in the negotiations, informed reporters that issues regarding China's export limitations on specific minerals had been addressed. He highlighted that the U.S. would reciprocate by rolling back its own measures against Chinese imports "in a balanced manner."
In an attempt to apply pressure amid escalating trade issues, U.S. officials had restricted the export of a variety of American products and technologies, which included chemicals, airplane components, and software, along with proposing bans on Chinese students’ enrollment in U.S. universities.
According to a source familiar with the negotiations, which was not authorized to comment publicly, the Chinese delegation committed to resuming shipments of rare earths to the U.S. In response, the U.S. is set to lift export controls on Chinese products implemented after the Geneva talks, with both actions occurring concurrently.
