High-stakes negotiations between the United States and China have concluded in London with both sides announcing a preliminary agreement aimed at easing trade tensions, particularly over the export and use of rare earth minerals and magnets.
After two days of intensive dialogue, US Commerce Secretary Howard Lutnick said a framework had been established that could resolve key disputes over the strategic materials, which are essential in manufacturing smartphones, electric vehicles, military hardware, and clean energy technologies.
“We have reached a framework to implement the Geneva consensus,” Lutnick told reporters, referring to the earlier diplomatic understanding between the two nations. “Once the presidents approve it, we will then seek to implement it.”
The tentative deal will now be presented to US President Donald Trump and Chinese President Xi Jinping for final approval. The agreement follows a phone call between the two leaders last week, described by President Trump as a “very good talk,” and builds on the progress made during a previous summit in Geneva.
Rare earth minerals, which China dominates in terms of global supply, were a central focus during the talks. The US has accused China of deliberately delaying exports of these critical materials, in what Washington perceives as retaliation amid ongoing technological and trade disputes. In response, the US has limited China’s access to American-made semiconductors and other advanced technology components, particularly those tied to artificial intelligence.
Vice Commerce Minister Li Chenggang of China confirmed the mutual understanding, saying, “The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting.”
This development comes after a recent temporary truce over trade tariffs, which was nearly derailed by mutual accusations of non-compliance. Analysts see the London agreement as a positive step that could prevent further escalation and lay the groundwork for more comprehensive trade cooperation between the two superpowers.
If the deal receives presidential backing, it may lead to more predictable supply chains and reduced tensions in the global tech and manufacturing sectors.
