The US and China have agreed on a framework trade deal that involves mutual cancellation of export restrictions on the supply of rare earth metals and cutting-edge technologies. Negotiations between delegations from both countries took place in London, where the parties agreed on a mechanism for implementing the Geneva Consensus. The agreements reached include partial tariff reductions and the removal of trade barriers.
This is reported by Finway
Key Terms of the Agreement and Reactions
US Secretary of Commerce Howard Lutnick stated that the agreed terms now require approval at the highest level—from Presidents Donald Trump and Xi Jinping. According to Lutnick, the issue of exporting rare earth metals from China to the US is a central part of the agreement, and in return, the United States must lift restrictions on the supply of advanced technologies to China.
“The final implementation of the agreement depends on the consent of Donald Trump and Xi Jinping”.
Analysts emphasize that the framework agreement demonstrates the willingness of the US and China to de-escalate trade tensions; however, several issues remain unresolved. Natixis expert Jianwei Xu notes that additional internal consultations are necessary in each country for a final settlement.
Market and Cryptocurrency Reactions
China’s official confirmation of the agreement came just a few hours after the US announcement. Chinese officials stressed that the negotiations were an important step toward restoring mutual trust between the countries. Financial markets reacted cautiously: the CSI 300 index showed a slight increase, while US futures remained under pressure. Investors are awaiting details of the agreement’s structure and its signing by the leaders of both nations, as Donald Trump may make changes to the already agreed terms.
The price of Bitcoin barely reacted to the news: the first cryptocurrency is trading near the $109,550 mark, with a weekly gain of about 4% (according to TradingView).
It is worth noting that recently, the US Federal Court of International Trade ruled that the president exceeded his authority in imposing tariffs on goods from dozens of countries under the pretext of a state of emergency. The Trump administration appealed the decision, and the Appeals Court supported the government, suspending the lower court’s ruling until the case is resolved.
Additionally, surveys have shown that 80% of Americans support the idea of partially converting US gold reserves into Bitcoin.