**US and China Craft Path to Trade Resolution Amid Tensions**

*Negotiations in London signal potential easing of tensions between Washington and Beijing, focusing on rare earth minerals crucial for technology.*

 

Top officials from the United States and China have laid a strategic groundwork in London intended to ease the ongoing trade tensions that have clouded the relationship between the two major economies. US Commerce Secretary Howard Lutnick announced that officials have agreed in principle to a plan that will address issues surrounding rare earth minerals and magnets critical for technology manufacturing.

Following two days of intensive negotiations, both nations are preparing to present this framework to their respective leaders, President Donald Trump and President Xi Jinping, for final approval. The discussions prioritized the vital role of Chinese exports in rare earth minerals, which are essential for the development of modern technology including smartphones and electric vehicles.

Previously, Washington and Beijing had established a temporary truce over trade tariffs but have since accused each other of non-compliance with the terms. The US expressed concerns over China's delays in exporting key rare earth materials, while China criticized America for its restrictions on Chinese access to critical goods such as semiconductors related to artificial intelligence (AI).

Lutnick emphasized the significance of the new framework stating, "Once the presidents approve it, we will then seek to implement it." The discussions have emerged as a follow-up to a recent phone call between Trump and Xi, deemed as having produced positive outcomes.

In past months, the trade battle intensified when the US imposed significant tariffs on imports, leading China to reciprocate with increased rates on American goods—a cycle of escalating tariffs that peaked at 145%. A notable reset came after May meetings in Switzerland, where both nations agreed to reduce tariffs temporarily in a bid to negotiate a more permanent resolution in 90 days.

Despite these efforts, both sides have since accused the other of breaching non-tariff agreements. The US Trade Representative noted that China has yet to lift restrictions on rare earth magnet exports, while Beijing claims the US has violated the agreement by hindering sales of essential technology to Chinese firms.

Just before the latest round of talks, Chinese authorities indicated progress, approving some rare earth export licenses. However, the details regarding which countries these exports would involve remain undisclosed.

With both nations looking to solidify their positions in the global market, Trump indicated that Xi had consented to reopen trade in rare earth materials. The outcome of this negotiation could set a crucial precedent for future trade relations and the global economy’s direction amidst rising tension.