Senior negotiators from the United States and China have agreed on a framework to resume trade talks and address bilateral disputes after two days of discussions in London, Chinese state media reported Wednesday (June, 11). The agreement marks a step toward reviving the fragile trade truce reached last month in Geneva.
The talks came amid rising tensions over exports of rare earth minerals and advanced technologies, particularly semiconductors used in artificial intelligence. Other sticking points include U.S. visa policies for Chinese students and China’s sizable trade surplus with Washington.
Last month, the two sides agreed to suspend tariffs of more than 100% on each other’s goods for 90 days to avert an escalation of the trade war that had raised fears of a global economic slowdown. Wendy Cutler, a former U.S. trade negotiator now with the Asia Society Policy Institute, said subsequent disputes have consumed 30 days of that window, leaving only 60 days to resolve key issues such as unfair trade practices, overcapacity, goods transfers and the fentanyl crisis.
Li Chenggang, China’s vice commerce minister and international trade representative, said both sides had in principle agreed on a framework to implement understandings reached between U.S. President Donald Trump and Chinese leader Xi Jinping as well as the Geneva negotiations.
According to the official Xinhua news agency, the framework will serve as the basis for future talks, though detailed plans for the next round have not yet been announced.
The Chinese delegation, led by Vice Premier He Lifeng, included Commerce Minister Wang Wentao and Li Chenggang. The U.S. side was represented by Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bassant and U.S. Trade Representative Jamieson Greer.
One key dispute involves China’s export restrictions on rare earth minerals, imposed in April, which have alarmed global automakers. Beijing has signaled it may ease those limits, while seeking U.S. concessions on advanced semiconductor technology access.
Meanwhile, a U.S. federal appeals court in Washington on Tuesday allowed the government to continue collecting tariffs imposed by Trump not only on China but also on other countries, even as it reviews a ruling against the policy.
Trump recently reiterated at the White House the need to “open up” China’s market to U.S. goods, warning: “If we don’t open China, we may not do anything.”
The trade war between the world’s two largest economies has reverberated globally. The World Bank on Tuesday cut its growth forecasts for the U.S. and global economy, citing rising trade barriers. Analysts say the London framework signals an effort to avoid further escalation but caution that resolving core issues – from technology to rare earths to trade balance – within the remaining 60 days will be challenging.
