Did US and China Reach a Trade Truce?
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Synopsis
In a significant development, US and Chinese officials have agreed on a framework to revive their trade truce. This agreement, following intense negotiations, aims to lower tariffs and resume critical exports. The final approval awaits the leaders of both nations, paving the way for potential economic relief and stability.
Key Takeaways
- Framework for trade truce agreed upon
- Focus on lowering tariffs
- Resumption of critical mineral exports
- Presidential approval pending
- Potential global economic impact
London, June 11 (NationPress) Senior officials from the United States and China revealed on Wednesday that they have reached an agreement on a framework aimed at revitalizing the trade truce between the two nations after two days of rigorous discussions.
Representatives from both nations stated that the framework intends to reinstate a prior agreement established in Switzerland last month, focused on reducing tariffs and allowing Beijing to resume exports of essential minerals.
This plan is set to be presented to US President Donald Trump and Chinese President Xi Jinping for their final endorsement.
US Commerce Secretary Howard Lutnick mentioned that the agreement should lead to the removal of restrictions on rare earth minerals and magnets imposed by China.
“Additionally, various measures imposed by the United States when those rare earths were not supplied are expected to be lifted,” he added. “As President Trump indicated: ‘In a balanced way.’”
China currently holds a near-monopoly on the export of rare earth minerals, which are vital for the production of smartphones, electronics, and electric vehicles. Beijing has leveraged this dominance as a bargaining tool in the ongoing trade conflict by restricting supplies to the global market.
In response, the US has limited China's access to American products, including semiconductors and technologies related to Artificial Intelligence (AI).
“We have established a framework to execute the Geneva consensus,” Lutnick informed reporters.
“Upon presidential approval, we will move forward with its implementation,” he added.
This new wave of negotiations ensued after a phone conversation between President Trump and China's leader Xi Jinping last week.
“We have established a framework to execute the Geneva consensus following the call between the two presidents,” Lutnick stated.
“The goal is to consult with President Trump for his approval and subsequently with President Xi. If approved, we will then proceed with the implementation of the framework.”
“In principle, both parties have reached a framework to enact the consensus agreed upon by the two heads of state during their phone call on June 5 and the agreement made at the Geneva meeting,” stated China's Vice Commerce Minister Li Chenggang.
Point of View
It is essential to recognize the delicate balance both nations are attempting to achieve through this trade agreement. While the potential for economic stabilization is evident, it is crucial to monitor the implementation of these measures, ensuring they benefit both countries equitably.
NationPress
16/06/2025
Frequently Asked Questions
What is the significance of the trade truce?
The trade truce is crucial as it aims to ease tensions between the US and China, potentially leading to economic stability and reduced tariffs, benefiting businesses and consumers.
What are rare earth minerals and why are they important?
Rare earth minerals are essential for manufacturing high-tech products like smartphones, electronics, and electric vehicles. China's dominance in this market significantly impacts global supply chains.
What are the next steps after the framework is approved?
Once the framework receives approval from both presidents, the respective administrations will work on implementing the agreed-upon measures to restore trade relations.
