United States and Chinese officials said they had agreed on a framework for a trade truce, which removed China's export restrictions on rare earths.

Trade negotiations between the United States and China will continue on Tuesday in London, with both sides trying to preserve a fragile truce brokered last month.

Rare earths are not just an economic issue, they are also central to national security. F-35 aircraft, nuclear submarines, and even Tomahawk missiles contain kilos of these metals. The American defense sector has no immediate alternative, and domestic reserves are limited.

The United States should resolve trade disputes with China through equal dialogue and mutually beneficial cooperation, Vice Premier He Lifeng said.

Trump said in his Truth Social post that the hour-and-a-half conversation phone call was “focused almost entirely on TRADE,” while the Chinese readout singled out Xi’s stern warning on Taiwan – the reddest of lines for Beijing – and the issue of Chinese student visas.

Global stocks climbed on Monday while the dollar retreated as talks began in London between the United States and China, aimed at cooling a trade dispute between the world's two largest economies. U.S.

Delegates from the United States and China are set to meet Monday in London after a phone call between the nations' leaders seemingly led to a cooling of tensions related to their otherwise heated recent trade dispute.