The teams of US President Donald Trump and Chinese President Xi Jinping were able to agree on a framework agreement to restore a trade truce and lift China's restrictions on rare earth exports. However, there is currently no evidence of a solid settlement to the trade conflicts.
Points of attention
- Global markets are closely watching the developments in the US-China trade war as uncertainty persists.
- Insights from officials suggest the new agreement could have a significant impact on the trade relationship between the two economic powerhouses.
What did the US and China agree on?
According to the head of the US Department of Commerce, Howard Lutnick, the new agreement between Washington and Beijing "fills with meaning" the Geneva agreement on the easing of bilateral tariffs.
He is also convinced that this agreement will "in a balanced way" lift restrictions on exports from China of rare earth minerals and magnets, as well as some of the recent US export restrictions.
Chinese Vice Minister of Commerce Li Chengang also made a statement on this matter.
He also emphasized that, in general, a framework trade agreement was reached, which will be presented to Donald Trump and Xi Jinping.
Journalists point out that officials in Washington and Beijing have until August 10 to agree on a more comprehensive agreement to ease the trade war.
Otherwise, tariffs will jump from 30% to 145% on the part of the US and from 10% to 125% on the part of China.
