Washington, June 11 (V7N) — The United States and China have reached an agreement in principle to establish a framework aimed at easing ongoing trade tensions between the two global powers, Reuters reported on Wednesday (June 11).

The preliminary framework will now be submitted for approval to US President Donald Trump and Chinese President Xi Jinping.

US Commerce Secretary Howard Lutnick expressed optimism about the potential breakthrough, saying the agreement could resolve long-standing restrictions on rare earth minerals and magnetic products—key components in modern technology industries ranging from smartphones to electric vehicles and military equipment.

The announcement followed two days of intensive negotiations between senior US and Chinese officials held in London. The talks focused primarily on rare earth mineral exports, an area where China currently dominates global supply.

Although Washington and Beijing reached a temporary agreement on tariffs last month, both nations have since accused each other of breaching its terms, leading to renewed uncertainty in global markets.

If finalized, this framework could mark a significant step in stabilizing trade relations between the world’s two largest economies.

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