The United States and China agree on a "framework" for resolving trade disputes after talks in London.

The United States and China announced early Wednesday that they have reached a "framework" during their trade talks held by their delegations over two days in the British capital, London, with the results to be elevated to the leadership of both countries for final approval.

The Chinese official in charge of international trade, Li Xingqiang, told reporters that "both sides have reached a preliminary agreement on a framework, and will submit a report on this framework to their leadership."

Meanwhile, U.S. Trade Representative Howard Lutnick expressed optimism about the ability of this framework to resolve lingering trade disputes, including the issue of rare earth exports from China, which Washington considers "extremely limited."

Senior trade officials from both sides participated in the talks, with the U.S. delegation led by Treasury Secretary Scott Bessent, Trade Secretary Howard Lutnick, and Trade Representative Jameson Greer. Lutnick confirmed that the discussions "progressed positively," with headway made in discussing the pending trade files between the two countries.

This development comes at a time when investors are eagerly awaiting the outcome of the talks, after U.S. stock markets showed mixed performance at the opening yesterday, Tuesday.

According to Reuters data, the Dow Jones Industrial Average fell 23.5 points (0.05%) to 42,738.27 points, while the S&P 500 index rose by four points (0.07%) to 6,009.91 points. The Nasdaq Composite Index also climbed 28.9 points (0.15%) to reach 19,620.108 points.