After 20 hours of intense negotiations in London – and a late-night delivery from a well-known restaurant – the US and China have emerged with a framework trade agreement that offers a pause in escalating tensions but falls short of a full breakthrough.
US Commerce Secretary Howard Lutnick described the outcome with cautious optimism. “We finally have meat on the bone,” he told reporters in London. “This is progress – not just atmospherics – and it reflects meaningful give on both sides.”
Three pillars of the London framework
- Tariffs stopped until August 10: Both nations have agreed to a temporary halt in tariff escalation to allow space for continued dialogue.
- Concessions from China have been agreed on to ease export controls on rare earth elements and industrial magnets, critical for the US defence and automotive sectors. This move is seen as a strategic opening, particularly given China’s grip on global rare earth supplies.
- US concessions include a rollback on selected semiconductor restrictions, a signal that Washington is open to de-escalation in the sensitive tech space.
Implementation or illusion?
The agreement is now in the so-called “implementation phase”, awaiting ratification by Chinese President Xi Jinping and US President Donald Trump. But the reaction from financial markets is one of cautious recalibration.
“Markets have seen the movie of a US-China deal falling apart, so too have markets seen the patch-up movie many times,” said veteran analyst Terry Haines at Pangaea Policy.
Equities, bonds and foreign exchange markets registered only marginal moves. The hesitation is rooted in scepticism, given the long history of similar efforts unravelling.
“China’s not interested in geopolitical moderation,” Mr Haines said. “Today’s geopolitical situation argues against China wanting to do any broad deals – especially with China’s client states, Russia and Iran, both becoming more belligerent and difficult over the past week.”
Cynicism or realism?
The broader concern among analysts is that China may be engaging in what’s been called “extend and pretend” – offering incremental concessions to avoid conflict while avoiding deeper structural change.
What happens next?
Markets and risk takers have a simplistic take on “fool me once, shame on you. Fool me twice, shame on me”.
The framework agreed to in London represents a moment of stability in a volatile relationship, but few are mistaking it for a turning point. Markets, policymakers and analysts alike are watching closely – not for more words, but for tangible implementation and long-term change.
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Company name: baraka
Started: July 2020
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Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
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Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
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Her ambition is to spread UAE’s culture of love and acceptance through serving coffee, the country’s traditional coffee in particular.
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Gender equality in the workplace still 200 years away
It will take centuries to achieve gender parity in workplaces around the globe, according to a December report from the World Economic Forum.
The WEF study said there had been some improvements in wage equality in 2018 compared to 2017, when the global gender gap widened for the first time in a decade.
But it warned that these were offset by declining representation of women in politics, coupled with greater inequality in their access to health and education.
At current rates, the global gender gap across a range of areas will not close for another 108 years, while it is expected to take 202 years to close the workplace gap, WEF found.
The Geneva-based organisation's annual report tracked disparities between the sexes in 149 countries across four areas: education, health, economic opportunity and political empowerment.
After years of advances in education, health and political representation, women registered setbacks in all three areas this year, WEF said.
Only in the area of economic opportunity did the gender gap narrow somewhat, although there is not much to celebrate, with the global wage gap narrowing to nearly 51 per cent.
And the number of women in leadership roles has risen to 34 per cent globally, WEF said.
At the same time, the report showed there are now proportionately fewer women than men participating in the workforce, suggesting that automation is having a disproportionate impact on jobs traditionally performed by women.
And women are significantly under-represented in growing areas of employment that require science, technology, engineering and mathematics skills, WEF said.
* Agence France Presse
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More coverage from the Future Forum
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
