Senior officials from China and the United States have reached an agreement on a framework to advance the Geneva trade consensus after two days of intensive discussions in London. The development aims to ease the prolonged trade tensions between the two largest global economies, which have been marked by mutual accusations of violating previous trade agreements.
“We have reached a framework to implement the Geneva consensus and the call between the two presidents,” U.S. Commerce Secretary Howard Lutnick stated. Chinese representatives confirmed this progress through a translator.
This breakthrough follows a recent telephone conversation between President Donald Trump and President Xi Jinping, which helped stabilise a relationship strained by tariff disputes and accusations of non-compliance. The dialogue builds on a mid-May summit in Switzerland, where both countries agreed to a 90-day suspension of newly imposed reciprocal tariffs and the rollback of certain trade restrictions introduced earlier in the year.
Lutnick noted that he and U.S. Trade Representative Jamieson Greer would return to Washington, D.C., to “make sure President Trump approves” the framework. He added that once President Xi also endorses the plan, they will then implement the framework.
A key element of the agreement addresses China’s restrictions on rare earth exports to the United States. Lutnick described these export controls as a fundamental part of the new understanding and expressed confidence that the issue “will be resolved in this framework implementation.”
While Chinese state media quickly reported on the Trump-Xi phone call last week, official outlets in Beijing remained notably quiet for over an hour following Lutnick’s announcement. The latest state media coverage from Tuesday evening focused on the continuation of talks after lunchtime.
Meanwhile, U.S. Treasury Secretary Scott Bessent informed reporters that he was returning to the United States to testify before Congress.
Industry analysts and global markets are closely monitoring the situation, particularly given the critical role rare earth elements play in manufacturing electronics, renewable energy technologies, and defence systems. A resolution on export restrictions could have widespread implications for global supply chains.
Although this agreement represents a tentative step towards resolving trade disputes, experts caution that reaching a comprehensive settlement remains complex. Both nations have expressed willingness to continue negotiations, raising hopes for further progress in the near future.