Washington: The United States and China have reached a framework for a potential trade agreement that is set to be discussed during the upcoming meeting between President Donald Trump and Chinese President Xi Jinping, according to U.S. Treasury Secretary Scott Bessent.
According to BBC, Bessent disclosed to CBS, the U.S. news partner, that the framework includes a "final deal" concerning TikTok's U.S. operations and a postponement of China's stringent controls over rare earth minerals. He also indicated that he does not foresee the proposed 100% tariff on Chinese imports being enacted, and that China is expected to resume significant soybean purchases from the U.S. "The tariffs will be averted," Bessent stated, emphasizing that both countries had "reached a substantial framework for the two leaders."
In a statement, the Chinese government confirmed that both negotiating teams "reached a basic consensus on arrangements to address their respective concerns" and agreed to "further finalize specific details."
Since President Trump returned to the White House, he has implemented and threatened extensive tariffs on imports from multiple countries, including China, claiming the policy would bolster U.S. manufacturing and employment. Although these tariffs have prompted several countries to negotiate new trade agreements with the U.S., China's retaliatory measures have led to a mutual pause on tariffs while pursuing a trade deal.
Earlier this month, Trump threatened to impose an additional 100% tariff on Chinese goods in response to China's tightened restrictions on rare earth exports, essential materials for electronics production. Accusing China of adopting a hostile stance, the U.S. president asserted that Beijing was attempting to "hold the world captive." With China controlling approximately 90% of the global supply of rare earths, the U.S. views the supply of these materials as a critical negotiating point.
China has agreed to "delay that for a year while they re-examine it," Bessent revealed on the news show, This Week. Another significant issue in the trade negotiations is soybeans, where China, the world's largest buyer, had halted all orders, affecting U.S. farmers. Bessent suggested that this boycott might soon end, although he withheld specifics, expressing optimism that the final deal would positively impact U.S. soybean farmers.
Regarding TikTok, Bessent mentioned that a deal has been reached concerning the video-sharing platform's U.S. operations, with President Trump and President Xi expected to finalize the transaction later in the week. The United States has been eager to separate TikTok's U.S. operations from its Chinese parent company, ByteDance, over national security concerns.
In addition to the developments with China, the U.S. announced new trade agreements with Malaysia and Cambodia, along with framework agreements with Thailand and Vietnam. President Trump emphasized the U.S.'s commitment to being a strong partner to Southeast Asian nations, many of which have been significantly affected by U.S. tariffs. Noteworthy deals include trade agreements involving critical minerals with Thailand and Malaysia, expanding U.S. access to rare earth elements, and an $8 billion order for Boeing jets from Vietnam.