China’s Vice Premier He Lifeng, the key negotiator on his country’s trade issues with the US, stressed today that it is essential that Beijing and Washington” strengthen cooperation” between the two countries and avoid “misunderstandings,” according to Chinese state media.

After months of tensions, the two major world powers announced overnight that they agreed on a “general framework” to smooth trade differences, leaving it to their respective presidents to ratify it.

That was the conclusion of two days of talks between the two sides in London, following initial talks last month that had led to a tentative agreement between Beijing and Washington to reduce customs tariffs imposed by one country on the other.

The two countries made “new progress in addressing each other’s economic and trade concerns” in the British capital, Chinese state-run television network CCTV reported today.

Enhancing cooperation

“The two sides should henceforth (…) continue to expand their consensus, limit misunderstandings and strengthen cooperation,” noted He Lifeng, who was quoted by the TV network.

After the talks in London, US Commerce Secretary Howard Latnik said he was confident that the issue of his country’s concerns over access to China’s rare earths, a point of friction between Beijing and Washington, would be “resolved.”

The deal reached in the British capital will, however, now have to be approved by Chinese President Xi Jinping and US President Donald Trump, negotiators from the two countries said.

During the negotiations in London, China told the US that “there must be mutual rapprochement between the two countries, words must be binding and actions must begin,” CCTV noted.

The two sides “had a sincere in-depth dialogue,” he explained.

Agreement in principle

Beijing and Washington reached an agreement in principle on a framework of measures aimed at implementing the significant consensus reached by the two heads of state during their telephone conversation on June 5,” CCTV added, referring to the recent conversation between Xi Jinping and Donald Trump.

Rare earths, mainly used in smartphones or batteries for electric vehicles, of which China is a key global supplier, were at the centre of the talks in London, with the US accusing Beijing of slowing down their export.