After months of tensions, Washington and Beijing seem to be moving towards a strategic decline in trade relations. The two largest economies in the world have announced that they have reached a “general framework” of agreement, which is left to be approved by the presidents and.
This agreement, as it emerged from two -day talks in London, aims to implement the consensus reached during the recent two -leaders’ telephone conversation on June 5. The central point of the agreement is to secure rare earths from China to the US, as well as the reduction of duties on either side.
USA and China are wounds close
US President Donald Trump has confirmed progress through a post on Truth Social, stating that China has agreed to supply the US in advance with rare earths and magnets, critical materials for the defense and automotive industry. “China will provide all the rare elements and magnets – a big victory for the two countries,” he said, adding that in return the US will allow Chinese students access to US universities.
Trump emphasized that the final agreement would be approved by the two leaders, expressing his willingness to “work closely” with Xi Jing to open the Chinese market in US trade. In a characteristic wording, he described the deal as “a big win for both countries”.
Latnik: duties at 55% remain – opening for more bilateral partnerships
US Secretary of Commerce, Howard Latnik has confirmed that the 55% customs duties imposed on Chinese products will remain in force despite the agreement. Speaking to CNBC, he stressed that “the deal is definitive” and that China is committed to re -examining ways to boost trade flows with the US.
At the same time, Latnik announced new trade agreements with third countries, which are expected to be announced by next week, indicating wider mobility in the US commercial strategy.
Cooperation without misunderstanding is asked by He Lifeng
On the Beijing side, Vice -President of the Hen Lifeng, a key negotiator on commercial issues, pointed out the need to avoid misinterpretations and boosting bilateral cooperation. “The two sides must broaden consensus, limit the misunderstandings and enhance cooperation,” he said according to CCTV. Chinese spokesman for international trade Lee Chengang has confirmed that the framework of the agreement is directly linked to the consent of Geneva and the conscience of the two presidents.
Rare Gaes and Strategic Sovereignty – Critical The Role of China
China remains the dominant player in the world chain of rare earths, producing about 60% of the world offer and processing almost 90%. This strategic advantage has raised concern in Washington, especially in view of the global turn to green energy and cutting -edge technologies. In early April, Beijing had imposed restrictions on critical metal exports in response to the increase in US duties.
Rare land and relative restrictions have been the main thorn of talks in London, with negotiators emphasizing the need for mutual commitment to maintain stability in global supply chains.
Impact on purchases – rise to oil prices after the agreement
The announcement of the agreement also had a direct impact on international markets. Brent oil price rose almost 2%, reaching $ 67.87 a barrel for August contracts. Investors appeared to respond positively to the possibility of diminishing tensions and restoring confidence in international trade.
Fragile progress with many uncertainties
Despite the agreement on the principle, analysts point out that the course to the final normalization of relationships remains fragile. The two sides have previously been accused of withdrawal, while the constant jokes of US commercial policy under Trump have caused volatility in international trade.
The next stance of the two presidents will determine whether the framework will become a viable strategic cooperation or whether it is a temporary truce with an uncertain future. In any case, the agreement in London offers a rare opportunity to restart in one of the most important geo -economic relations on the planet.
