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International trade

China and the US Make Positive Progress on Economic and Trade Tensions

Strategic Insights

— 1 min read

China and the US have intensified efforts to implement the outcomes of the "London Framework," making positive progress on multiple fronts and sending encouraging signals to the international community. The two sides have agreed in principle on the framework for implementing the important consensus reached by the two heads of state during their phone talks on June 5, and consolidating the outcomes of the economic and trade talks in Geneva. China has been reviewing and approving compliant export license applications for controlled items, while the US has taken corresponding steps to ease certain restrictive measures against China.

Key Takeaways:

  • The China-US economic and trade talks in London have led to positive progress on multiple fronts, demonstrating the effectiveness of equal dialogue and consultation in resolving disputes.
  • The "London Framework" aims to implement the outcomes of the economic and trade talks in Geneva and consolidate the consensus reached by the two heads of state.
  • China has been reviewing and approving compliant export license applications for controlled items, while the US has taken steps to ease certain restrictive measures against China.
  • The US imposition of "reciprocal tariffs" constitutes an act of economic coercion that undermines the rules-based international trade system and must be firmly opposed.
  • The negative consequences of tariff measures are becoming increasingly evident, with the World Bank and the OECD downgrading growth forecasts for the US and the global economy.
  • Economists in the US warn of growing stagflation pressures and long-term repercussions for global trade liberalization.
  • China welcomes efforts by other countries to resolve trade differences with the US through equal consultations and calls on all parties to uphold the multilateral trading system with the WTO at its core.

Statistics:

  • The US and China have agreed in principle on the framework for implementing the outcomes of the economic and trade talks in Geneva.
  • The World Bank has downgraded growth forecasts for the US and the global economy, citing trade policy uncertainty as a key factor.
  • The OECD has also downgraded growth forecasts for the global economy, highlighting the negative impact of trade tensions.
  • The US has taken steps to ease certain restrictive measures against China, including reviewing and approving compliant export license applications for controlled items.
  • The total value of China-US trade has reached $630 billion.

Sources:

  • https://english.henan.gov.cn/2025/07-13/3180125.html
  • World Bank growth forecast report
  • OECD growth forecast report

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