USA and China Agree in Principle to Reduce Trade Tensions

The United States and China have agreed in principle to reduce trade tensions between the two biggest economies in the world.

According to the BBC, U.S. Commerce Secretary Howard Lutnick said the deal should help solve restrictions on rare earth minerals and magnets.

Both sides said they will now take this plan to their presidents — Donald Trump of the U.S. and Xi Jinping of China — for final approval. This agreement came after two days of trade talks in London.

The main issue in the talks was China’s export of rare earth minerals, which are very important for making modern technology like smartphones, electric cars, and other electronic devices.

Last month, the U.S. and China agreed to a temporary break in their trade war, but since then, they have blamed each other for breaking the agreement.

The U.S. said China has been delaying the export of rare earth materials, which are needed for making things like smartphones and electric vehicles. At the same time, the U.S. has restricted China’s access to American technology, especially in semiconductors and artificial intelligence (AI).

If both President Trump and President Xi approve this deal, it will move forward and be implemented, said the U.S. Commerce Secretary.