US and China announce “General Framework” to Ease Trade Tensions
American and Chinese negotiators announced on the night of Tuesday, June 9, 2025, to Wednesday that thay have agreed on a “general framework” to smooth their commercial disputes. The agreement now awaits validation from their respective presidents. This marks a notable step in ongoing US-China trade relations.
This announcement is the culmination of two days of meetings held in London, extending late into the evening on Tuesday.
“The two parties have reached an agreement in principle on a general framework (…) and will report on this general framework to their respective leaders,” stated Li Chenggang, the Chinese representative at international trade, to the press around midnight local time (11:00 p.m. GMT).
According to US trade minister Howard Lutnick, “The idea is that we are going to come back, to speak with President (American Donald) Trump and make sure that he approves. They (the Chinese) will return and speak to President XI (Jinping) to make sure that he approves.”
“And if this is the case, we will implement this general framework on which we have hardly worked in the past two days,” he added, highlighting the intensive effort put into reaching this preliminary agreement.
lunick also expressed confidence that tensions surrounding Chinese exports of rare earth elements will be “resolved” within the framework of this agreement, though he did not provide specific details.
Chinese rare earth elements are a crucial point of contention in the negotiations. The United States aims to restore the pace of expeditions of these strategic metals, which is currently “than that considered optimal by companies,” according to Kevin Hasset, Mr. Trump’s main economic advisor on CNBC.
These raw materials are essential for various industries, including electric batteries, wind turbines, and defense systems such as missiles, radars, and satellites.
Conversely, China is seeking the United States to reconsider certain export controls on it’s products.
The Path to Agreement: London talks and Geneva Truce
Seeking Resolution “as fast as possible”
The London discussions aimed to extend and preserve the truce established a month prior in Geneva.
This truce, set to last until August, involved both economic powers substantially reducing their respective customs duties for a 90-day period.
However, renewed tensions arose after Donald Trump accused Beijing of not adhering to the terms of the de-escalation agreement signed in Geneva.
A phone conversation between President Trump and his Chinese counterpart Xi Jinping last week was deemed positive, paving the way for further negotiations.
Chinese negotiator Li Chenggang described the exchanges in London as “very professional, rational, in-depth and frank.”
“We are advancing as quickly as possible,” stated Jamieson Greer, the representative of the White House (USTR), who remained “positive” despite acknowledging the “complex” relationship with China.
In Geneva, Washington had agreed to reduce customs duties on Chinese products from 145% to 30%, while Beijing committed to a similar reduction from 125% to 10% on American products for 90 days.
Economic Impact of Trade Tensions
The consequences of the trade war are already evident, with a 12.7% decrease in chinese exports to the United States in May compared to April, according to official Beijing statistics.
While working towards standardizing relations with Washington, the Chinese government has also engaged in discussions with its other partners to form a united front.
Key Players in the US-China trade Talks
- United States:
- Jamieson Greer (American representative in trade)
- Howard Lux (Secretary of State for Commerce)
- Scott Bessent (Secretary of the Treasury)
- donald Trump (President)
- Kevin Hasset (Mr. Trump’s main economic advisor)
- China:
- He Lifeng (Chinese Deputy Prime Minister)
- Wang Wentao (Minister of Commerce)
- Li Chenggang (Representative to international trade)
- XI Jinping (President)
Summary of Key Events
| Date | Event | Location |
|---|---|---|
| Prior to June 2025 | Trade tensions escalate between US and China | Various |
| Geneva (Month Prior) | Truce established with reduced customs duties for 90 days | Geneva, Switzerland |
| Last Week | Positive phone call between Presidents Trump and Xi Jinping | N/A |
| June 9, 2025 | Two-day meetings conclude with “general framework” agreement | London, England |