Singapore's Lianhe Zaobao reported today: "Chinese Vice Minister of Commerce Chenggang Li said on Tuesday (June 10) that after two days of talks, the negotiation teams of China and the United States have agreed on a trade framework to be submitted to their respective leaders."

Bloomberg reported that US Secretary of Commerce Raimondo also told reporters: "We have reached a framework for implementing the Geneva consensus."

The negotiators from the United States and China launched economic and trade consultations in London on Monday (June 9) local time. This is the second round of formal consultations held by both sides since the outbreak of the US-China trade war.

Comment: The economic and trade negotiations between China and the US in London revolved around core interests, involving multi-domain games: In the rare earth supply chain, the US side requested the restoration of exports and the establishment of mechanisms, while the Chinese side emphasized the legitimacy of regulation and sought to expand civilian supplies through technical cooperation; In terms of technology control, the US side used the easing of export of some chips and other items as leverage to exert pressure, while the Chinese side demanded that the US lift restrictions on enterprises and students; Regarding tariff adjustments, both sides may extend the freeze period and add new exemption lists, and the US may retain the trigger mechanism for additional tariffs; On the rule issues, the US side attempted to expand labor and environmental protection topics, while the Chinese side insisted on developing country treatment. Both sides had differences on WTO reform and digital trade rules, and may simultaneously establish science and technology cooperation and cross-border data mechanisms to promote dialogue normalization. The negotiations possess dual characteristics of practical cooperation and strategic competition.

The two sides agreed on a trade framework, which is a positive development. Previously, at the Geneva talks, both sides reached consensuses such as canceling 91% of retaliatory tariffs, and the London negotiations further clarified the implementation framework, contributing to stabilizing the economic and trade relations between China and the US.

However, the trade framework reached this time still needs approval from their respective leaders, and subsequent implementation will still face challenges. Previous experiences indicate that from reaching a trade agreement to its actual execution, various obstacles may arise. The博弈of different interest groups within the United States and changes in political situations may affect the progress of the agreement.

Source: https://www.toutiao.com/article/1834590892620804/

Disclaimer: This article only represents the author's personal views.