The United States and China have reached a preliminary framework for a long-awaited trade deal ahead of the upcoming meeting between President Donald Trump and President Xi Jinping in South Korea this week.
According to US Treasury Secretary Scott Bessent, the framework includes a final agreement on TikTok’s US operations, a one-year deferral on China’s tightened rare earth export controls, and the resumption of substantial Chinese soybean purchases from American farmers. Both nations appear eager to ease tensions that have defined their trade relationship since Trump’s return to the White House.
Constructive Progress in Asia
Bessent held talks with senior Chinese officials on the sidelines of the ASEAN summit in Malaysia, where he described the negotiations as “constructive.” He confirmed that “the tariffs will be averted,” signaling a rare moment of optimism between the two global superpowers. Beijing also issued a statement noting that both sides had reached “a basic consensus on arrangements to address their respective concerns.”
The trade discussions come at a delicate time for both economies. China is working to stabilize its exports amid slower growth, while the US faces mounting inflationary pressures and calls to protect domestic manufacturing.
Rare Earths and Soybeans Key Bargaining Chips
A major sticking point in recent months has been China’s dominance in rare earth minerals, elements critical to electronics, clean energy, and defense technologies. Trump’s earlier threat of a 100% tariff on Chinese imports was in direct response to Beijing’s restrictions on these materials. However, under the new framework, China has agreed to delay such export limits for a year while both sides reassess terms.
For American farmers, the breakthrough offers hope. China, the world’s largest buyer of soybeans, halted purchases amid the trade war, severely affecting the US agricultural sector. Bessent, himself a soybean farmer, said he believes the new deal “will make farmers feel really good about this season and the coming years.”
TikTok Agreement Finalized
Another high-profile outcome is the apparent resolution of TikTok’s US operations. The deal will reportedly allow American companies to control TikTok’s algorithm and maintain six of seven board seats under a new US structure. Trump, who once sought to ban the platform, has since used it to rally younger voters, marking a significant policy reversal.
Regional Outreach and New Partnerships
The announcement coincides with a broader US trade initiative in Southeast Asia. Washington has signed new mineral and agricultural trade frameworks with Thailand, Malaysia, Cambodia, and Vietnam expanding American influence and supply chain resilience beyond China.
As Trump prepares to meet Xi in Seoul, both leaders are expected to “finalize and announce” the trade framework. Analysts suggest the meeting could mark the start of a new, pragmatic phase in US–China economic relations one balancing rivalry with necessity.
