U.S. ‍and China Reach Trade Agreement Framework After London Talks

Updated June 11, 2025
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Following high-level discussions in London, the United States and China ⁢have established a framework for a trade agreement, according to representatives from both nations. The talks, spanning two days, aimed ⁤to de-escalate trade tensions between the world’s two largest economies.

U.S. Commerce secretary Howard Lutnick announced the agreement,‍ stating it would implement the⁢ Geneva consensus and address issues raised during a recent call between president Donald Trump and Chinese President Xi Jinping. Li ‍Chenggang, china’s international trade representative, echoed this sentiment.

The agreement follows ‍a phone conversation between Trump and Xi last week, which aimed to stabilize relations strained by mutual accusations of geneva trade agreement violations. A mid-May meeting in Switzerland resulted in a 90-day suspension of tariffs imposed in April.

Lutnick said he and U.S. Trade⁤ Representative Jamieson Greer will seek President Trump’s approval of the framework. If President Xi approves,implementation will follow.

“We have reached ‍a⁣ framework to implement⁤ the Geneva consensus and the call between⁤ the two presidents,”

Jianwei Xu, a senior economist at Natixis, noted that briefing ⁢leaders suggests unresolved details remain. Xu added that agreeing on a framework ⁤signals ⁣a commitment to de-escalation and dialog, but the path to concrete agreements remains uncertain.

A key component of⁢ the trade⁤ agreement ⁢framework addresses Chinese restrictions on rare-earth‍ exports to the U.S.,according to Lutnick. The U.S. anticipates a resolution‍ to this ⁣issue through the‍ framework’s implementation. In⁢ return, the U.S. may roll back recent restrictions on advanced tech sales to ⁣China as Beijing approves rare-earth exports.

While Chinese state media promptly reported on the Xi-trump call, official channels were initially muted following⁤ Lutnick’s declaration.Later, a lower-profile statement cited Vice Commerce Minister Li, emphasizing that the talks fostered bilateral trust. Treasury Secretary scott Bessent said he was returning to the U.S. to testify before Congress.

Chinese Vice Premier He Lifeng and Commerce Minister Wang Wentao also participated in the London discussions. Market reactions saw ⁢China’s CSI ⁣300 index slightly up, while U.S. stock futures dipped as investors awaited further details on the trade framework.

What’s next

The next steps involve securing approvals from both President trump and President Xi. Further details regarding the implementation of the framework and specific measures related to rare-earth exports and tech sales are expected to emerge following these⁢ approvals.