US-China Trade Talks Make Breakthrough with New Framework Agreement

London — Top officials from the United States and China announced on Wednesday that they have reached a preliminary framework to revive the stalled trade truce between the two economic superpowers. The breakthrough follows two days of intensive negotiations and builds on an earlier consensus formed in Geneva last month.

The framework agreement, which includes mutual commitments to reduce tariffs and resume critical mineral exports, will now be presented to US President Donald Trump and Chinese President Xi Jinping for final approval.

US Commerce Secretary Howard Lutnick confirmed that the deal involves China removing its export restrictions on rare earth minerals and magnets—materials essential for smartphones, electronic goods, and electric vehicles. “There were also a number of US restrictions imposed when those supplies were halted,” he said. “You should expect those to come off as well, in a balanced way, just as President Trump had indicated.”

China currently holds a dominant share in the global rare earth market and had leveraged this position by limiting exports during the ongoing trade conflict. Meanwhile, the US had responded with restrictions on Chinese access to American semiconductors and cutting-edge technologies, particularly in the field of artificial intelligence.

“The framework restores the Geneva consensus,” Lutnick stated, referencing the agreement reached during high-level meetings in Switzerland last month. “We’ll now take it back to President Trump for approval. The Chinese delegation will do the same with President Xi. If both leaders sign off, implementation will begin shortly.”

The latest diplomatic progress was preceded by a phone call between Trump and Xi on June 5, during which both leaders agreed to renew efforts to settle trade disputes. Chinese Vice Commerce Minister Li Chenggang confirmed that the framework aligns with the consensus reached in that call and during the Geneva meetings.

“This framework represents a major step forward in stabilising bilateral trade relations and restoring mutual trust,” Li said. “If approved, it could lay the foundation for a more balanced and sustainable economic partnership.”

While final approval is still pending, the announcement has already sparked optimism among global markets, with investors hopeful that easing trade tensions between the world’s two largest economies could boost global economic stability and supply chain resilience.

Team Maverick.