The Voice News: After two days of high-stakes negotiations in London, top US and Chinese officials have reached an agreement in principle to ease trade tensions between the world’s two largest economies.
The talks focused heavily on rare earth minerals—essential components in everything from smartphones to electric vehicles. US Commerce Secretary Howard Lutnick confirmed that the proposed deal would resolve key disputes over restrictions on rare earth exports and magnets.
“We have reached a framework to implement the Geneva consensus,” Lutnick said. “Once the presidents approve it, we will then seek to implement it.”
The proposed agreement now awaits approval from US President Donald Trump and Chinese President Xi Jinping. The framework follows a phone call between the two leaders on June 5, which Trump described as “a very good talk.”
Chinese Vice Commerce Minister Li Chenggang echoed the sentiment, saying both sides had agreed in principle on implementing understandings reached in both Geneva and the recent call.
The London meeting included senior figures such as US Trade Representative Jamieson Greer, Chinese Commerce Minister Wang Wentao, and US Treasury Secretary Scott Bessent.
Last month, a temporary truce was struck during Switzerland talks, leading to a pause in escalating tariffs. As part of the truce, US tariffs on Chinese imports dropped from a peak of 145% down to 30%, while China cut its tariffs on US goods to 10% and pledged to ease restrictions on mineral exports. A 90-day window was set to reach a more permanent deal.
However, tensions reignited as both sides accused each other of breaching the truce. The US said China was slow to release rare earth exports, while Beijing claimed the US violated terms by restricting access to AI-related technologies and revoking Chinese student visas.
In a sign of potential compromise, China’s Ministry of Commerce announced over the weekend that it had approved some rare earth export licenses—though it didn’t specify destinations. Trump also said on Friday that Xi had agreed to resume trade in rare earth materials.
The outcome of these negotiations could be critical in shaping future US-China economic relations, particularly in sectors tied to emerging technologies and global supply chains.