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Home Business

US-China trade truce back on track

Northeast NewsbyNortheast News
June 11, 2025
in Business, Neighbours
(pixabay)
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After two days of intensive negotiations, top officials from the United States and China have agreed on a framework to revive their trade truce, marking a significant step toward easing tensions between the world’s two largest economies.

The framework seeks to restore the agreement reached in Switzerland last month, which included commitments to reduce tariffs and resume China’s exports of critical minerals.

The proposal will now be submitted to US President Donald Trump and Chinese President Xi Jinping for final approval.

US Commerce Secretary Howard Lutnick expressed optimism about the deal, stating it would lead to the removal of restrictions on rare earth minerals and magnets imposed by China.

“There were measures implemented by the United States in response to the halt in rare earth exports. Once this agreement is in place, those measures will be lifted in a balanced manner,” Lutnick said.

Rare earth minerals, crucial for manufacturing smartphones, electronics, and electric vehicles, are a linchpin in global supply chains.

China’s dominance in this market has been a key leverage point in the trade conflict, as Beijing restricted exports during negotiations.

Meanwhile, the US has imposed limitations on China’s access to American semiconductors and AI-related technologies.

The renewed framework stems from a phone call between President Trump and President Xi on June 5, which paved the way for this round of discussions.

“We have reached a framework to implement the Geneva consensus and the agreements made during the leaders’ call,” Lutnick told reporters.

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China’s Vice Commerce Minister Li Chenggang echoed the sentiment, confirming that both sides had reached a consensus on implementing the agreements.

The framework represents a pivotal effort to de-escalate a prolonged trade war that has disrupted global markets.

However, its success will hinge on approval from the two presidents and subsequent implementation of the agreed-upon measures.

Tags: ChinaTalksTrade truceUS
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