US and China Agree on Trade Framework After London Negotiations
The US and China reached a trade framework agreement after two days of negotiations in London, aimed at reviving the previous truce from Geneva. Key points include:
- Disputes over rare earth exports and export controls were central to the discussions.
- The US delegation included Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent.
- Lutnick indicated potential easing of restrictions on rare earths based on China's compliance.
- Chinese officials described the talks as “rational and candid,” reaffirming previous commitments, including a 90-day tariff reduction window.
- Market reaction was positive, with China's CSI 300 increasing by 0.8% and Hong Kong’s Hang Seng rising by 1%, while S&P 500 futures saw a slight decline.
- This agreement may signal a shift from Biden-era policies, with Trump possibly relaxing chip sale controls contingent on China's actions regarding rare earth exports.
- Uncertainty remains due to ongoing reviews of some restrictions by US courts.