U.S. and China Reach Tentative Trade Framework

After two days of high-stakes negotiations in London, U.S. and Chinese officials announced they have reached a tentative framework aimed at reviving their trade truce and easing export restrictions—particularly those involving critical minerals like rare earths.

While the agreement offers a path forward, it falls short of resolving the core disputes that have long strained economic relations between the world’s two largest economies.

U.S. Commerce Secretary Howard Lutnick described the framework as adding “meat on the bones” of an earlier consensus reached in Geneva, where both nations had agreed to roll back a series of harsh retaliatory tariffs.

However, progress had stalled due to China’s continued restrictions on rare earth exports—materials essential to electronics, defense systems, and clean energy technologies. In response, the U.S. imposed its own export controls on advanced technologies, including semiconductor software and aircraft components.

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The latest agreement, though lacking in full detail, would see China ease those mineral restrictions in exchange for the U.S. lifting some of its recent export bans. Lutnick confirmed that both sides will now return home to consult their respective leaders—President Donald Trump and President Xi Jinping—before any implementation moves forward.

China’s Vice Commerce Minister Li Chenggang echoed Lutnick’s sentiment, stating that the framework was agreed upon “in principle,” and that further steps would depend on presidential approval in both countries.

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Despite this cautious optimism, experts warn the deal is far from a comprehensive resolution. Longstanding U.S. concerns—ranging from China’s state-led economic model to what the Trump administration calls unfair trade practices—remain unaddressed.

According to Josh Lipsky of the Atlantic Council, the framework signals progress, but only modestly. “They are back to square one,” he said, “but that’s much better than square zero.”

Both nations now face an August 10 deadline to finalize a broader agreement. If no deal is reached, tariffs that had been scaled back—currently hovering around 30% on U.S. goods and 10% on Chinese products—will surge to punishing levels of up to 145% and 125% respectively.