U.S.-China agree on trade framework to implement Geneva Consensus

The U.S. and China have reached an agreement on a trade framework after their second high-level talks.

If approved, this will allow them to implement terms agreed in the Geneva Consensus last month, and could resolve Beijing's rare earth export restrictions on Washington.

Our Lee Soo-jin reports.

The United States and China have agreed on a trade framework that would allow them to implement an agreement reached at the trade talks held in Geneva last month.

U.S. Commerce Secretary Howard Lutnick said Wednesday that the U.S. and China have reached a framework to implement the Geneva Consensus, which each negotiating team will present for approval by the leaders of both countries before it is put into effect.

This comes after two full days of talks that began on Monday in London.

U.S. Treasury Secretary Scott Bessent and Lutnick had already expressed optimism about the negotiations.

"I have to go back to Washington to testify before Congress tomorrow. We have had two days of productive talks."

"I think we're working on all sorts of change, and I think the talks are going really, really well.

The high-level talks between the world's largest economies follow discussions held in Geneva on May 10th and 11th, where the U.S. and China agreed to temporarily slash tariffs.

But since those talks, sentiment has soured with both sides accusing the other of breaching the agreement.

As tensions escalated, U.S. President Donald Trump and Chinese leader Xi Jinping held a 90-minute phone call last week, during which they agreed to move forward with a new round of trade talks.

The U.S. announced strict export controls on advanced semiconductor chip technology and visa cancellations for Chinese students, while China has been slow to lift blocks on shipments of rare earth minerals, a key focus of this second round of talks.

Lutnick expressed hope that the framework will help resolve China's rare earth export restrictions.

Wall Street's three major indices closed higher on Tuesday, buoyed by optimism from senior U.S. administration officials.

The blue-chip focused Dow ended up zero-point-25 percent, the S&P 500 rose zero-point-55 percent, and the tech-heavy Nasdaq gained zero-point-63 percent.

Lee Soo-jin, Arirang News.