Kathmandu: The United States and China have agreed on the framework of a potential trade deal that will be finalized when President Donald Trump meets Chinese President Xi Jinping later this week, US Treasury Secretary Scott Bessent said on Sunday.
The framework includes a final agreement on TikTok’s US operations and a one-year deferral of China’s tightened export controls on rare earth minerals. Bessent also said he did not expect Trump’s threatened 100% tariff on Chinese goods to take effect, while China is set to resume large-scale soybean purchases from the US.
The announcement comes as both nations attempt to ease tensions in their ongoing trade war. The two leaders are scheduled to hold talks in South Korea on Thursday.
Bessent, who met senior Chinese officials during the ASEAN summit in Malaysia, described the talks as “constructive,” saying the two countries had reached “a substantial framework” to avert tariffs. China confirmed that both sides had achieved a “basic consensus” and would finalize the details soon.
The deal marks a significant shift after months of escalating tariff threats and restrictions on rare earth exports — materials crucial to US manufacturing. Under the new understanding, China will delay its export curbs for a year, while the US will suspend additional tariffs.
The framework also resolves the long-standing dispute over TikTok, with the app’s US operations to be controlled by American companies and a US-led board. Trump and Xi are expected to formally approve the agreement during their meeting.
Additionally, Washington announced a series of trade pacts with Southeast Asian countries, including Malaysia, Cambodia, Thailand, and Vietnam, expanding US access to critical minerals and increasing trade cooperation across the region.
-BBC