The negotiators of the two countries had previously spoken of a fundamental cleaning in the commercial and customs conflict without giving any details. The result should be presented to US President Trump and China’s head of state XI Jinping for withdrawal.
“Our deal with China has been completed,” wrote the US head of state in his online network Truth Social. However, the agreement is still subject to “the final approval by President XI and me”. “President XI and I will work closely together to open China to American trade,” said Trump. “That would be a great profit for both countries!”
Beijing has so far commented on the conversations in the British capital. Chinese government officials also spoke of “progress” and a fundamentally constructive exchange. The deputy Chinese Prime Minister He Lifeng asked “as the next step” both sides to “reduce misunderstandings and strengthen cooperation”.
Since Trump’s took office in January, the trade dispute between the two largest economies in the world has escalated. China reacted to Trump’s hard customs policy compared to the US trading partners with their own counter-tariffs, whereupon the US President increased the surcharges. After all, a dial of 145 percent was true for Chinese exports to the USA, the other way around 125 percent.
In mid -May, the two countries then agreed in Geneva to significantly reduce the surcharges for 90 days in order to enable negotiations. A major sticking point is now the export of rare earths that China had restricted in the course of the customs dispute. China is the world market leader, especially in the processing of metals, which are essential for a number of technologies.
US Finance Minister Bessent said on Wednesday that it was possible to bring economic relationships with China back into balance when Beijing has been a “reliable partner” in the trade talks. “When China corrects its course by complying with its part of the original trade agreement that we have outlined in Geneva, (…) Then the restoration of the balance between the two largest economies in the world is possible,” said Bessent to US MP.
