Description: Trade representatives from China and the US have concluded the two – day London negotiations on a positive note, with statements from both camps announcing that a fundamental framework has been reached. The US Secretary of Commerce, Howard Lutnick stated that both teams agreed to return to the basic trade principles initially discussed in Geneva and lift exports bans on both sides in a balanced way. The Chinese delegation, led by Premier He Lifeng, stated that a comprehensive framework has been reached with the US after 20 hours of rational and candid negotiations. Teams from both countries stated the proposals would be delivered to their respective presidents for approval, after which the framework is expected to be implemented.
Impact: Skepticism remains the main narrative surrounding the trade negotiations as no precise reconciliation between the two countries was reached. The projected baseline for a trade deal has been reportedly set, however, considering that trade is one out of the many disputed interests between China and the US that dictates and impacts foreign policies in both countries, instability, distrust and insecurity still remain high on both sides. China’s latest decision to tap the Asian market regarding their rare earth minerals exports, coupled with Trump’s legally contested tariffs on the domestic front and the interconnectedness of two of the world’s largest economies signals that the framework would be implemented if negotiators refined and ironed out some of the crucial trade differences.