US and China Reach Trade Framework Agreement After London Talks

The US and China have agreed on a trade framework after two days of negotiations in London, according to China's trade negotiator Li Chenggang. The agreement was announced by CGTN, the Chinese state broadcaster. The framework is a result of the talks held in London, but details of the agreement have not been disclosed.

The United States and China have agreed on a trade framework following two days of negotiations in London, as announced by China's trade negotiator Li Chenggang. The agreement, revealed by CGTN, the Chinese state broadcaster, marks a significant step in the ongoing trade dispute between the two economic giants. However, details of the framework have not been disclosed yet.

The talks, led by U.S. Commerce Secretary Howard Lutnick and Chinese Vice Premier He Lifeng, aimed to ease the trade dispute that has escalated over the past year. The negotiations, held at Lancaster House in London, followed a recent call between President Donald Trump and President Xi Jinping, which was described as a "very good talk" by Trump. The talks also built upon the Geneva consensus, which agreed to a 90-day suspension of most of the 100%-plus tariffs imposed by both countries.

According to analysts, the lack of market reaction to the agreement suggests that the outcome was largely expected. Chris Weston, head of research at Pepperstone, noted that while the agreement is positive, the details, particularly around rare earths and semiconductors, will be crucial. Carol Kong, currency strategist at Commonwealth Bank of Australia, expressed skepticism about the framework's comprehensiveness and suggested that tensions might escalate again in coming months.

The agreement comes amid ongoing concerns over China's economic health and its impact on global markets. Data released Monday showed China's export growth in May missed expectations, mainly due to a sharp drop in shipments to the U.S. Amid these economic uncertainties, aluminum futures rose to around $2,460 per tonne, reflecting investor optimism about the trade talks.

Ray Attrell, head of FX strategy at National Australia Bank, cautioned that the agreement is still in its early stages and that the baseline view remains that the global tariff situation will be worse than before Trump's presidency. Tony Sycamore, market analyst at IG, echoed this sentiment, noting that the agreement is right where expectations were and that there is still indecision in U.S. equity futures.

The agreement is expected to have significant implications for global markets, particularly in the areas of rare earths, semiconductors, and tariffs. As details of the framework emerge, investors and financial professionals will closely monitor the developments to gauge their impact on the global economy.

References:
[1] Reuters. (2025). U.S. Commerce Secretary Howard Lutnick said that a trade framework and implementation plan agreed with China in London should result in restrictions on rare earths and magnets being resolved. [URL](https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SE007:0-analysts-react-to-us-china-trade-agreement/)
[2] Associated Press. (2025). US and China hold second day of trade talks in London. [URL](https://apnews.com/article/us-china-trade-talks-london-bf991a07e374050ae85c7187f1366ab7)
[3] TradingView. (2025). Aluminum futures rise as US-China trade talks loom. [URL](https://www.tradingview.com/news/te_news:461673:0-aluminum-futures-rise-as-us-china-trade-talks-loom/)
[4] NDTV. (2025). US-China trade talks in London could end in handshake. [URL](https://www.ndtv.com/video/us-china-trade-talks-us-china-trade-talks-in-london-could-end-in-handshake-950569)
[5] ABC News. (2025). US-China trade talks enter day 2 in London. [URL](https://abcnews.go.com/International/wireStory/us-china-trade-talks-london-enter-day-122684540)