US, China agree on trade 'framework'

LONDON:

Top officials from the United States and China said Tuesday that they had agreed on a "framework" to move forward on trade, following two days of high-level talks in London to resolve tensions.

US Commerce Secretary Howard Lutnick expressed optimism after a full day of negotiations that concerns surrounding rare earth minerals and magnets "will be resolved" eventually, as the deal is implemented.

But this framework will first need to be approved by leaders in Washington and Beijing, officials said, at the end of meetings at the British capital's historic Lancaster House.

All eyes were on the outcomes of negotiations as both sides tried to overcome an impasse over export restrictions. US officials earlier accused Beijing of slow-walking approvals for shipments of rare earths.

The world's two biggest economies were also seeking a longer-lasting truce in their escalating tariffs war, with levies currently only temporarily on hold.

"We're moving as quickly as we can," US Trade Representative Jamieson Greer told reporters.

"We would very much like to find an agreement that makes sense for both countries," he added, noting that the relationship was complex.

"We feel positive about engaging with the Chinese," he maintained.

Speaking separately to reporters, China International Trade Representative Li Chenggang said: "Our communication has been very professional, rational, in-depth and candid."

Li expressed hope that progress made in London would help to boost trust on both sides.

US Treasury Secretary Scott Bessent earlier described the closely-watched trade talks as productive, although scheduling conflicts prompted his departure from London with negotiations still ongoing.

Bessent, who led the US delegation with Lutnick and Greer, left early to return to Washington for testimony before Congress, a US official told AFP.

Chinese Vice Premier He Lifeng headed his country's team in London, which included Li and Commerce Minister Wang Wentao.

Both sides do not yet have another gathering scheduled.

But Lutnick said Tuesday that US measures imposed when rare earths "were not coming" would likely be relaxed once Beijing moved forward with more license approvals.

Global stock markets were on edge, but Wall Street's major indexes climbed on hopes for progress earlier Tuesday.

The London negotiations follow talks in Geneva last month, which saw a temporary agreement to lower tariffs.

This time, China's exports of rare earth minerals — used in a range of things including smartphones, electric vehicle batteries and green technology — were a key issue on the agenda.