US and China Unveil New Framework to Settle Trade Disputes

LONDON, UK — Senior negotiators from the United States and China have reached an agreement on a framework intended to advance trade discussions, Chinese state media reported Wednesday. This development follows two days of negotiations in London that concluded late Tuesday.

Recent disputes had threatened to unravel a precarious truce established last month in Geneva. In response to rising tensions, President Donald Trump and Chinese President Xi Jinping engaged in a phone conversation last week aimed at mitigating conflicts.

Li Chenggang, China’s vice minister of commerce and international trade representative, indicated that both parties have agreed in principle on the framework necessary for executing the consensus. This framework builds upon decisions made by the two leaders during their previous discussions.

Details about future rounds of negotiations remain scarce. The negotiations involved key figures such as U.S. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, who met with Chinese officials at Lancaster House, a historic venue near Buckingham Palace.

Wendy Cutler, a former U.S. trade negotiator, noted that the recent disputes have consumed 30 of the 90 days allocated for resolving ongoing issues. The parties previously consented to a temporary suspension of the majority of tariffs, which exceeded 100%, as a means to de-escalate the trade conflict that has raised concerns of a potential recession. In a related announcement, the World Bank has downgraded its growth forecasts for the U.S. and global economies, attributing the change to rising trade barriers.

Cutler remarked on the lost opportunity for both nations, stating that only 60 days remain to address critical concerns such as unfair trade practices and issues surrounding fentanyl. Since the Geneva meetings, tensions have escalated, especially regarding advanced semiconductors linked to artificial intelligence and various visa restrictions affecting Chinese students in the U.S.

China, the leading global producer of rare earth minerals, has hinted at a potential relaxation of export limits established earlier this year, which alarmed manufacturers worldwide. Conversely, Beijing seeks the lifting of U.S. restrictions hindering access to semiconductor technology.

Cutler emphasized the unprecedented nature of the U.S. potentially negotiating its export controls—an issue raised by China for nearly two decades. She cautioned that such negotiations could lead to increased Chinese demands regarding export controls in future discussions.

In Washington, a federal appeals court ruled Tuesday allowing the government to continue collecting tariffs implemented by Trump, not only on China but also on other nations, while an appeal regarding his trade policy is pending.

Trump has expressed a desire to increase U.S. exports to China, stating, “If we don’t open up China, maybe we won’t do anything.”

Moritsugu reported from Beijing, with contributions from Associated Press writers in Washington.