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.

China has reported its exports to the United States fell 35% in May from a year earlier, straining the economy, as trade talks with Washington were due to start in London

One expert said he expected loosened controls on U.S. exports of semiconductors in exchange for China's releasing of more rare earths.