The United States and China have reached the framework of a potential trade agreement just days before President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea, according to US Treasury Secretary Scott Bessent.
Speaking to CBS, Bessent revealed that the framework includes a “final deal” on TikTok’s US operations and a one-year deferral on China’s tightened export controls on rare earth minerals materials vital to global electronics manufacturing. He added that he does not expect the 100% tariff on Chinese goods, previously threatened by President Trump, to take effect.
Both countries have been working to ease tensions and prevent an escalation in the ongoing trade war between the world’s two largest economies. Bessent held talks with senior Chinese trade officials on the sidelines of the ASEAN summit in Malaysia, which Trump also attended during his Asia tour.
“The countries have reached a substantial framework for the two leaders,” Bessent said, noting that “the tariffs will be averted.” Beijing confirmed that both sides “reached a basic consensus on arrangements to address their respective concerns” and agreed to finalize specific details.
Since returning to the White House, President Trump has imposed and threatened sweeping tariffs on imports from multiple countries, claiming the policy protects US jobs and manufacturing. However, his most aggressive measures have targeted China, prompting retaliatory actions from Beijing.
Rare earth minerals have been a particular flashpoint, as China processes about 90% of the world’s supply. The proposed deferral of export controls is seen as a key step toward easing market fears.
Another major issue China’s suspension of US soybean imports may also be resolved soon. “I think we have addressed the farmers’ concerns,” said Bessent, himself a soybean farmer, hinting at a potential resumption of Chinese purchases.
