The US and China have reached a framework agreement to normalize bilateral trade following two days of intensive negotiations in London. Under the agreements, China has committed to accelerate the supply of rare earth metals, which are strategically important for the American automotive and defense industries. In return, the US has agreed to ease export controls on a range of critical technologies and materials, including software for semiconductor manufacturing, nuclear and aerospace components, chemicals, and parts for the aviation industry. Additionally, the ban on admitting Chinese citizens to US universities will be lifted.
This is reported by Business • Media
Key Provisions of the New Agreement
The signing of this agreement must be finalized by the leadership of both countries. It is known that US President Donald Trump characterized the relations between the states as “excellent.” Furthermore, the US plans to impose tariffs on Chinese goods at a rate of 55%, while China will maintain its tariffs at 10%.
Negotiations in London were necessary after the previous agreement, which involved mutual tariff reductions of 115 points and a 90-day trade truce, was threatened with collapse.
Prospects for Implementing the Agreements
The new trade agreement is expected to be implemented before the end of the 90-day pause in tariff imposition, which concludes in August 2025. Approval of this agreement is anticipated soon, which should stabilize economic ties between the two largest economies in the world and ease tensions in international trade.