The United States and China have agreed “in principle” to a framework aimed at easing escalating trade tensions and dismantling mutual export restrictions, following two days of high-level negotiations in London, officials from both nations confirmed on Wednesday.
The agreement, reached during talks intended to build upon prior negotiations in Geneva and a recent call between President Donald Trump and Chinese President Xi Jinping, now awaits final approval from both heads of state before implementation can begin.
Speaking to reporters, China’s Vice Minister of Commerce and chief trade negotiator Li Chenggang confirmed the provisional consensus and described the outcome as a “constructive step” toward long-term economic stability between the world’s two largest economies. Chinese state broadcaster CGTN quoted Li as saying the framework provides a clear path to implement previous commitments.
U.S. Commerce Secretary Howard Lutnick, in a separate press briefing reported by Reuters, echoed Li’s remarks, emphasizing the tentative nature of the deal. “If that is approved, we will then implement the framework,” Lutnick said. He added that both parties had made concessions on key export control measures that have strained global supply chains, particularly in the tech and manufacturing sectors.
One of the most contentious points China’s restrictions on rare earth mineral and magnet exports to the United States has been addressed “as a fundamental part of the framework,” Lutnick revealed. These minerals are vital for producing semiconductors, electric vehicles, and military hardware.
In exchange, the U.S. is expected to lift some of its export controls imposed in response to China’s earlier restrictions. Lutnick cited President Trump’s approach of balancing trade policies, suggesting that Washington’s rollback would match Beijing’s in scope and impact.
The Trump administration had previously tightened export regulations on chip design software critical to China’s technology sector, while also threatening to revoke Chinese student visas. These actions were widely viewed as retaliation for China’s failure to follow through on its Geneva promises.
Kevin Hassett, Director of the National Economic Council, signaled a possible easing of restrictions on certain microchips, though he maintained that limits on high-performance AI chips, notably those produced by Nvidia, would remain in place due to national security concerns.
Analysts say the tentative deal could signal a thaw in U.S.–China trade relations, though the ultimate test will come with implementation and compliance.