U.S.-China Trade Truce: Framework Reached Amid Rare Earth Contest

U.S. and Chinese officials revealed on Tuesday their agreement on a framework to revive a trade truce, removing China's export restrictions on rare earths. The talks, held in London over two days, involved significant negotiations, but the long-term resolution to trade disparities remains uncertain as the framework awaits presidential approval.

The discussions followed a stalled agreement from Geneva, which saw China maintaining restrictions on critical mineral exports, leading to the Trump administration's countermeasure of restricting semiconductor design software exports, among others. The newly reached framework in London proposes easing some U.S. export restrictions, though specifics were not shared.

The agreement aims to address export control disputes, yet doesn't resolve deeply rooted differences over Trump's unilateral tariffs or longstanding U.S. concerns about China's economic model. The progress comes with a deadline of August 10 to finalize a comprehensive agreement, or face sharp increases in tariffs.

(With inputs from agencies.)