‘Framework’ agreement reached in London is only the start on a long road to normalising economic relations
Cautious optimism that China and the United States can further de-escalate the trade row Washington started has peaked and may soon be vindicated. It rose when the two sides, meeting in Geneva last month, agreed on a 90-day pause in new sky-high bilateral tariffs to allow for negotiations, fell with more US tech export bans and rose again after last week’s phone call between presidents Xi Jinping and Donald Trump.
Now hopes have received a major boost after top economic and trade officials from each side, meeting in London, reached agreement in principle on a “framework” to implement the consensus between Xi and Trump. Indeed that is what Trump alluded to yesterday when he said: “Our deal with China is done, subject to final approval with President Xi and me.” That, however, is easier said than done, as seen by the extent and acrimony of chilled relations between the two sides.
The agreement follows two days of trade talks between top officials in London in the first meeting of what is now called the China-US economic and trade consultation mechanism. Vice-Premier He Lifeng led the Chinese delegation. China’s top trade negotiator, Li Chenggang, said it was hoped progress at the London meeting would be conducive to increasing trust between China and the US. That achievement on its own would be significant bilaterally, regionally and globally.
