The United States and China have reached an initial agreement on a trade framework following discussions in London, aiming to ease the ongoing tensions between the two economic powerhouses. After two days of negotiations, officials announced that the framework would be presented for approval to President Donald Trump and Chinese President Xi Jinping.

This development comes after both countries agreed to a 90-day pause on most tariffs during previous talks in Geneva. The recent discussions in London are seen as a significant step towards reducing the friction over trade issues, which have been affecting global economic stability. US Commerce Secretary Howard Lutnick emphasized that both sides have addressed key issues and are looking to implement the “Geneva consensus” once the framework is approved by the presidents.

A critical element in the talks involved the United States’ measures against China’s rare earth exports, which have been under scrutiny due to a slowdown. Lutnick suggested that these measures might be relaxed as supply increases. Chinese Vice Commerce Minister Li Chenggang described the discussions as “professional and candid,” expressing hope that the progress made would foster better trust between the two nations.

The trade tensions have significantly impacted global markets, prompting concerns about economic growth. The World Bank recently adjusted its global growth forecast from 2.7 percent to 2.3 percent, citing the uncertainty surrounding trade issues as a major factor. Despite a sense of optimism surrounding the framework, experts note that reaching a comprehensive deal remains a complex challenge.

Asian stock markets responded positively to the news, with Japan’s Nikkei 225, Hong Kong’s Hang Seng, and China’s CSI 300 showing notable gains. This reflects investor hope that a resolution to the trade disputes could lift the shadows cast over the global economy. However, analysts urge caution, pointing out that the path to a final agreement is fraught with challenges and uncertainties.