Following two days of high-level discussions at Lancaster House in London, senior US and Chinese officials announced on Tuesday, June 10, 2025, a new “framework” agreement to address trade disputes. The negotiations focused on reducing tensions between the world’s two largest economies, particularly over export controls and rare earth minerals critical for technologies like electric vehicles, smartphones, and renewable energy systems.
US Commerce Secretary Howard Lutnick expressed confidence that the framework would resolve issues surrounding rare earths and magnets as it is implemented, though the agreement awaits final approval from leaders in Washington and Beijing.
The talks aimed to break an impasse over China’s export restrictions, which US officials claim have delayed rare earth shipments. Both sides also sought to de-escalate the ongoing tariff war, with existing tariffs currently paused but no long-term resolution yet secured.
US Trade Representative Jamieson Greer emphasized the urgency of the negotiations, stating, “We’re working swiftly to reach a mutually beneficial agreement.” He described the dialogue with Chinese counterparts as positive and constructive.
China’s International Trade Representative Li Chenggang called the discussions “professional, candid, and thorough,” expressing optimism that the framework would foster greater trust.
The US delegation, co-led by Treasury Secretary Scott Bessent alongside Lutnick and Greer, described the talks as productive, though Bessent departed early for Congressional testimony. China’s team, led by Vice Premier He Lifeng, included Commerce Minister Wang Wentao and Li Chenggang. No date for follow-up talks has been set.
Lutnick indicated that US measures linked to delayed rare earth shipments could be lifted if China accelerates export license approvals, a key issue since temporary agreements were reached in Geneva last month. Kevin Hassett, a top economic adviser to President Donald Trump, noted that China agreed to release rare earth supplies in exchange for reduced tariffs, though slow implementation has frustrated some US companies.
Emily Benson of Minerva Technology Futures highlighted the symmetrical trade measures both nations have adopted, cautioning that a traditional agreement may be elusive in this high-stakes context. She suggested incremental progress, such as China streamlining export licenses and the US relaxing certain high-tech export restrictions, could prevent further escalation.
Analysts, however, remain cautious. Thomas Mathews of Capital Economics noted that Washington’s firm stance may persist, potentially impacting market confidence. Since President Trump’s return to office, a 10 percent tariff on various countries has disrupted global trade, with Chinese exports to the US dropping sharply in May 2025.
The World Bank downgraded its 2025 global growth forecast on Tuesday, citing uncertainty from unresolved trade tensions. Meanwhile, China is pursuing partnerships with nations like Japan and South Korea to offset the impact of US tariffs.
