Some positive news out of the US-China trade talks in London. The framework agreement reached depends on Trump approving it. I can’t see why not, unless he is one of his moods.
Bolding is mine, looks positive, but it is clear its not yet a trade deal. Still, have to start somewhere, right?:
U.S. Commerce Secretary Lutnick speaking after trade discussions with China:
We have reached a framework to implement the Geneva ConsensusCombined Geneva Consensus with outcome from leaders call on June 5We’re going to go back and see if Trump approves itIf approved we’ll implementSays Xi and Trump call changed outcome
U.S. Trade Representative Greer:
focussed on full complianceWe don’t have another meeting scheduled, but parties will be in contact tomorrow and the next dayWe are in constant contact with China
U.S. Commerce Secretary Lutnick:
Idea behind all this is to increase our trade with ChinaFramework is first step, we had to get the negativity out
U.S. Trade Representative Greer:
We’re moving as quickly as we canWe feel positive about engaging with the ChineseUp to President whether deadline gets extendedExpect to see progress from China on fentanyl
U.S. Commerce Secretary Lutnick:
we expect that rare earth and magnets issues will be resolved in thisWhen they approve the licenses then you should expect our export implementation to come down again
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Earlier:
Chinese Vice Commerce Minister Li Chenggang says talks with US on trade rational, candidUS Treasury Secretary Bessent says trade talks with China will continue
The TL;DR on this is that China and the US have agreed to an in principle framework for implementing consensus between the two heads of state during their phone talks on June 5, and reached at Geneva talks. This is a start but there is still much to do before we cann call this a trade deal. That won’t stop you-know-who from spouting rubbish, just so you are prepared.
This article was written by Eamonn Sheridan at www.forexlive.com.