The ongoing trade tensions between the US and China have shown signs of easing, with both sides agreeing to a framework agreement that addresses several key issues. The talks, led by US Commerce Secretary Howard Lutnick and China's Vice Commerce Minister Li Chenggang, have made progress in resolving export restrictions on rare earth minerals and magnets, which are crucial for carmakers.
The agreement also includes a 90-day suspension of most tariffs imposed during the escalating trade war, which had sparked fears of recession. This development is significant as it could potentially resolve the damaging trade war between the two nations.
In a related development, US and Chinese negotiators have agreed to remove some recent US export restrictions, paving the way for the resumption of sensitive goods exchange between the two nations. The agreement on rare earth minerals and magnets is particularly significant, as China may ease export restrictions on these vital resources. This could be a major concession by Beijing, which has been accused of using its control over rare earths to exert economic leverage.
The framework agreement will now be reviewed by the leaders of both nations before it can take effect. The talks are complex and challenging, requiring compromise from both sides, but this development suggests that progress is being made towards resolving the trade tensions between the US and China.