• Preliminary Agreement Reached:
US and Chinese negotiators agreed on a framework to ease trade tensions after talks in London.

• Focus on Rare Earths:
The deal is expected to resolve disputes over rare earth minerals and magnets — critical materials for EVs, defense tech, and electronics.

• Mutual Rollback of Restrictions:
The US hinted it will ease export controls (on chip software, jet parts, etc.) once China resumes shipments of key minerals.

• High-Level Approval Needed:
The plan still awaits final approval by Presidents Trump and Xi before implementation.

• Fentanyl Trade Tied to Tariff Relief:
The US wants progress on fentanyl control from China as part of the broader trade balance effort.

• Wider Economic Stakes:
Trade disruptions hurt trust more than just profits — Chinese exports to the US dropped 34% in May.

• No Future Talks Scheduled (Yet):
Though frequent contact continues, no further negotiation rounds are officially planned.

• Market Reaction:
Equity markets remain calm but cautious. The yuan strengthened slightly, while the dollar weakened against major currencies.

What’s Next?
• This “framework” is a cautious handshake, not a full embrace. While rare earth access is vital, the deeper issue — tech sovereignty vs. resource dominance — remains unresolved. For now, both sides are simply buying time.