Japanese firms responded to the threat to their exports with a massive foreign direct investment campaign. The U.S. is blocking China from doing the same.

The president said he and Chinese President Xi Jinping still need to sign off on a preliminary deal, even though he called it "done."

After two days of talks in London, the U.S. and China have agreed in principle on a framework to carry out an agreement they reached on resolving their trade disputes last month, Chinese state media said.

US stocks closed higher as investors wait for news from another day of China-US trade talks in London. Key inflation data are also ahead.

While Donald Trump hailed the outcome of trade talks in London, Xi Jinping walked away with an understated strategic gain: a negotiating process that buys China time and helps defuse the threat of more harmful tariffs and technology curbs.

The only scenario in which China might deregulate its critical minerals export is if the U.S. fully removes tariffs imposed on Chinese goods as part of the trade war, said Wang Yiwei, a professor of international affairs at Renmin University, echoing the Chinese government’s earlier stance.

Economists saw progress in trade talks on the rare earth issue between the United States and China as a positive sign in moving toward a longer-term deal that would settle financial markets and