The US and China have agreed on a framework trade deal that includes mutual removal of export restrictions on rare earth metals and advanced technologies. The negotiations took place in London, where diplomats from both countries agreed on a mechanism for implementing the Geneva Consensus, which includes partial tariff reductions and limitations in strategic areas.
This is reported by Business • Media
Key Terms and Positions of the Parties
US Secretary of Commerce Howard Lutnick confirmed that an agreement has been reached, but the final decision must be made by Presidents Donald Trump and Xi Jinping. Lutnick emphasized that the issue of exporting rare earth metals from China to the US is a central point of the agreement. At the same time, the United States must lift the last restrictions on the supply of advanced technologies to China. According to the official, the decisive stage of negotiations depends on the approval of the leaders of both countries.
“The final implementation of the agreement depends on the agreement of Donald Trump and Xi Jinping.”
Analysts note that the new framework agreement indicates both parties’ desire to de-escalate the trade conflict, although many issues remain unresolved. Natixis expert Jianwei Xu emphasized that the agreement requires further coordination at the domestic level in both countries.
Reactions from China, Markets, and Investors
Official confirmation from China came only a few hours after public statements from the US. The state broadcaster CCTV reported the agreement, and Chinese officials described the negotiations as a step towards restoring trust between the nations.
Financial markets reacted cautiously to the news: the CSI 300 index rose slightly, while US futures remained under pressure. Investors are awaiting further details regarding the structure of the agreement and the official signing of documents by the presidents. Analysts do not rule out that Donald Trump may make changes to the terms of the agreement.
The leading cryptocurrency, Bitcoin, remained indifferent to the news about the agreement. At the time of publication, Bitcoin is trading around $109,550, with a weekly gain of 4%.
Earlier, the US Court of International Trade unanimously ruled that the president exceeded his authority by imposing tariffs on dozens of countries under the pretext of a state of emergency. However, the US Court of Appeals later supported the government, suspending the lower court’s decision pending the case’s review.
It is worth noting that according to recent surveys, 80% of US citizens support the idea of partially converting the country’s gold reserves into Bitcoin.