China and the United States have reached a preliminary consensus on trade negotiations.

First Round of Sino-U.S. Trade Mechanism Meetings Concludes: A Framework Agreement Reached

From June 9th to 10th local time,2021 Forex fraud list the first meeting of the Sino-U.S. Trade Consultation Mechanism was held in London, UK. Chinese Vice Premier He Lifeng attended the meeting alongside U.S. Treasury Secretary Bescent, Commerce Secretary Lutnik, and Trade Representative Greer. The two sides engaged in frank and in-depth dialogue on implementing the consensus reached during the June 5th call between the presidents of both countries and the outcomes of previous trade talks in Geneva. They reached a principled agreement on a framework of measures.

The conclusion of the meeting is also seen by the outside world as an important signal of resumed high-level communication between China and the U.S., aimed at preventing further tensions. The announcement led to a general rise in Asian stock markets.

Both Sides Emphasize a "Professional, Rational, and Candid" Tone in Dialogue

Chinese Vice Commerce Minister Li Chenggang stated that the talks reflected a spirit of professionalism and pragmatism, fostering trust-building. "We hope this progress will contribute to stabilizing Sino-U.S. trade relations and inject more certainty into the global economy," he added. The outcomes of the meeting will be reported to the leaders of both nations to seek further implementation.

He Lifeng emphasized that China always upholds the principle of mutual benefit and win-win cooperation, highlighting that cooperation benefits both sides, while conflict harms both. Although China does not wish for a trade war, it is unafraid of one, advocating for resolving differences through equal consultation.

U.S. Responds Positively: Anticipating Implementation of Consensus

The U.S. delegation also sent positive signals. Bloomberg quoted U.S. Commerce Secretary Lutnik saying that a preliminary framework has been established to implement the Geneva consensus, with him and Trade Representative Greer returning to Washington to seek President Trump's approval.

Lutnik stated that if China also confirms this framework, "we can begin the implementation process."

According to CNBC quoting a senior economist from Natixis, the results of the talks need to be reported to the high-level authorities in each country. While some technical differences remain, both sides have shown a willingness to continue working together.

Trade Barriers Ease, Market Sentiment Recovers

CNN noted that Wall Street investors, American businesses, and consumers have generally reacted optimistically to the meeting's results. The onerous bilateral tariff policies have caused economic uncertainty, and should the consultation mechanism be successfully implemented, it is expected to ease cost pressures and provide stability to the economy.

The London talks are widely regarded as a continuation of the May Geneva talks. Previously, China and the U.S. agreed to pause high tariffs for 90 days, but the U.S. subsequently introduced several restrictive measures, including curbing AI chip and chip design software exports and revoking visas for some Chinese students, which drew strong dissatisfaction from China, accusing the U.S. of breaking the agreement.

High-Level Call Paves Way, Tension Shows Signs of Easing

On June 5th, the leaders of China and the U.S. held another call, viewed by outsiders as a chance to ease recent tensions. Andrew Collier, a researcher at Harvard University's Kennedy School of Government, commented, "Although the London talks are not the end, they are clearly a positive beginning." He sees this as a window for "resetting" Sino-U.S. relations, avoiding a breakdown.

Deborah Elms, Trade Policy Director at the Hongkong-Hailing Foundation, pointed out that after two rounds of intense negotiations, both sides intend to prevent further escalation of tensions and start sketching out a clearer future path.

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