After two days of negotiations in London, American and Chinese trade envoys announced on Tuesday evening (11 June) that they have reached an agreement in principle on a broad trade framework. The outcome, while still pending formal approval by Presidents Donald Trump and Xi Jinping, is seen as a step forward in efforts to ease long-standing economic tensions between the two superpowers.
“The two parties reached a principled agreement on the general framework (…) and will present this framework to their respective leaders,” said Li Chenggang, China’s international trade representative, at a press conference.
US Commerce Secretary Howard Lutnick also expressed optimism, particularly regarding the issue of rare earth exports, which Washington has long accused Beijing of excessively restricting.
“This will be resolved through the implementation of this framework,” he stated.
What the deal includes
While the full text has not been released, both governments have confirmed that the framework outlines consensus on:
- Export controls (particularly on tech and sensitive goods)
- Rare earth materials vital for electronics and green technologies
- Technology transfer limitations
- Tariff suspension timelines
According to officials, the agreement builds on the 90-day tariff truce reached in Geneva and reflects months of backchannel negotiations. It will now be presented for final endorsement at the upcoming summit in Brussels, where Biden and Xi are both expected to attend.
Global reaction and next steps
Initial reactions from international markets were positive but cautious. Tech and industrial shares rose modestly, with analysts welcoming signs of cooperation but noting the lack of binding detail.
The deadline to finalise the agreement is 10 August, when the Geneva truce expires. If no ratified deal is in place by then, both sides risk a new wave of tariffs and export restrictions.
Observers note that while the framework is a promising development, it must be followed by firm commitments on enforcement and transparency, particularly in areas such as rare earth supply chains and intellectual property protections.
Read also: US and China agree to major reductions in tariffs for 90 days
For more videos and updates, check out our YouTube channel.
