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The US and China say they have agreed in principle to a framework for de-escalating trade tensions between the world’s two biggest economies.
US Commerce Secretary Howard Lutnick said the deal should result in restrictions on rare earth minerals and magnets being resolved.
Both sides said they would now take the plan to their presidents – Donald Trump and Xi Jinping – for approval.
The announcement came after two days of negotiations in London between top officials from Beijing and Washington.
Chinese exports of rare earth minerals, which are crucial for modern technology, were high on the agenda of the meetings.
Last month, Washington and Beijing agreed a temporary truce over trade tariffs but each country has since accused the other of breaching the deal.
The US has said China has been slow to release exports of rare earth metals and magnets which are essential for manufacturing everything from smartphones to electric vehicles.
Meanwhile, Washington has restricted China’s access to US goods such as semiconductors and other related technologies linked to artificial intelligence (AI).
“We have reached a framework to implement the Geneva consensus,” Lutnick told reporters.
“Once the presidents approve it, we will then seek to implement it,” he added.
The new round of negotiations followed a phone call between Donald Trump and China’s leader Xi Jinping last week which the US President described as a “very good talk”.
“The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting,” China’s Vice Commerce Minister Li Chenggang said.
