The latest round of US-China trade talks progress in London has sparked cautious optimism. After intense negotiations lasting over 20 hours, both sides agreed on a framework to restart sensitive goods shipments. This agreement now awaits final approval from leaders Donald Trump and Xi Jinping.
US Commerce Secretary Howard Lutnick explained the talks aimed to move past negativity and focus on positive trade growth. He said China promised to speed up shipments of rare earth metals vital to US auto and defense industries. Meanwhile, the US committed to easing some export controls. These concessions address key sticking points in bilateral trade.
Chinese chief trade negotiator Li Chenggang described the discussions as candid and thorough. Both delegations will present the framework to their respective leaders for sign-off. Despite this progress, the deal’s details remain uncertain, and top leaders could still reject it.
Markets reacted cautiously to the announcement. US equity futures dipped slightly, and the offshore yuan remained stable. However, China’s onshore stock market rose 0.9%, marking its largest gain since the previous Geneva agreement.
Experts say the US-China trade talks progress signals a shift from confrontation to coordination. Still, the underlying issues such as China’s large trade surplus and accusations of dumping remain unresolved. Investors hope this momentum will lead to a more stable trade relationship.
The talks followed a recent call between Trump and Xi, aimed at easing rising tensions over previous tariff disputes. Both sides blamed each other for slowing rare earth exports and imposing new export restrictions. These developments highlight the growing importance of export controls in modern trade conflicts.
Lutnick suggested the US might remove some restrictions as part of the deal, marking a major shift in policy. Analysts warn this could give China leverage over critical technologies but acknowledge the potential benefits of renewed trade flows.
The US and China now face a crucial 60-day period to resolve broader trade issues, including excess capacity and fentanyl trafficking. US Trade Representative Jamieson Greer emphasized fentanyl remains a top priority for the US government.
Despite the progress, experts say rebuilding trust will take time. The US-China trade talks progress may ease tensions, but fundamental disagreements persist. The next steps will determine if this framework leads to a lasting trade peace or another stalemate.
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