Trump touts 'done' deal with Beijing

AFP | Washington

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US President Donald Trump touted ties with China as "excellent" yesterday, saying the superpowers reached a deal after two days of talks aimed at preserving a truce in their damaging trade war.

Trump said on his Truth Social platform that China would supply rare earth minerals and magnets -- vital elements for American industries -- while Washington would allow Chinese students to remain in US universities.

His post came after top United States and Chinese negotiators announced a "framework" agreement late Tuesday following two days of marathon talks in London.

"Our deal with China is done," Trump wrote, adding that the agreement was still "subject to final approval with President Xi (Jinping) and me."

"President XI and I are going to work closely together to open up China to American Trade," he said in a second post. "This would be a great WIN for both countries!!!"

US stock markets showed little enthusiasm despite Trump's statements, but major indexes edged higher in early trading.

'Candid' talks

US Treasury Secretary Scott Bessent said Wednesday that it was possible to rebalance economic relations with China if Beijing proved a "reliable partner in trade negotiations.

" "If China will course-correct by upholding its end of the initial trade agreement we outlined in Geneva, and I believe after our talks in London they will, then the rebalancing of the world's two largest economies is possible," Bessent told lawmakers at the House Ways and Means Committee.

The two sides agreed to reduce their tit-for-tat, triple-digit tariffs during talks in Geneva last month, but cracks appeared in the detente after Trump accused China of violating the deal.

Washington was concerned at slower supplies of rare earths after Beijing in early April began requiring domestic exporters to apply for a license -- widely seen as a response to US tariffs.