The United States and China have reached an initial framework for a potential trade agreement, setting the stage for detailed discussions between Presidents Donald Trump and Xi Jinping later this week, according to US Trade Secretary Scott Bessent.
Speaking to CBS, Bessent said the framework includes progress on several major sticking points notably a final deal on TikTok’s US operations and a temporary deferral of China’s tighter export controls on rare earth minerals. He also indicated that the proposed 100% tariffs on Chinese imports, threatened by President Trump, are unlikely to take effect. In return, China is expected to resume large-scale soybean purchases from American farmers.
Both nations are under pressure to ease tensions in what has become a prolonged and costly trade war between the world’s two largest economies. Trump and Xi are scheduled to meet on Thursday in South Korea, following Bessent’s talks with Chinese officials during the ASEAN summit in Malaysia. Beijing described the discussions as “constructive.”
“We’ve reached a substantial framework for the two leaders,” Bessent said. “The tariffs will be averted.” Since returning to the White House, President Trump has reintroduced sweeping tariffs to boost domestic manufacturing, with China bearing the brunt of the measures.
China, which processes around 90% of the world’s rare earth minerals vital for electronics production, has agreed to delay its export restrictions for one year while re-evaluating its policy. This move is expected to ease pressure on US industries reliant on these materials.
Soybean trade another major flashpoint is also expected to normalize. China, the world’s largest soybean consumer, halted purchases during earlier rounds of tariff disputes, dealing a blow to American farmers. Bessent, himself a soybean grower, said he was confident the new agreement would provide relief. “Our farmers will feel really good about what’s coming for this season and the years ahead,” he noted.
On the technology front, Bessent confirmed that an agreement has been reached regarding TikTok’s US operations, which have faced repeated threats of a nationwide ban over security concerns. “Trump and Xi will finalize that transaction on Thursday,” he said.
The video-sharing platform, owned by Chinese company ByteDance, has been under US pressure to divest its American operations or face a shutdown. The Trump administration has extended the deadline for compliance several times, now pushing it to December to allow room for final negotiations.
If confirmed this week, the emerging deal could signal a rare moment of détente in US-China relations at least temporarily calming markets and offering relief to sectors caught in the crossfire of tariff threats and tech tensions.
