U.S.-China Trade Talks Make Headway as Leaders Prepare for Key Summit
The United States and China have reached a preliminary agreement on a broad trade framework, with several contentious issues addressed ahead of a face-to-face meeting between President Donald Trump and Chinese President Xi Jinping later this week in South Korea.
U.S. Treasury Secretary Scott Bessent confirmed that the framework includes a resolution on TikTok’s U.S. operations, the suspension of China’s rare earth export restrictions, and a plan for China to resume large-scale soybean purchases.
Rare Earth Restrictions Deferred, Soybean Sales to Resume
China has agreed to postpone its proposed restrictions on rare earth mineral exports for one year while it reassesses its policy. The move comes as Washington continues to accuse Beijing of weaponizing its near-monopoly on materials essential to modern electronics, from smartphones to solar panels.
This temporary pause provides relief to U.S. manufacturers and may help stabilize supply chains that had grown increasingly fragile under threat of restricted Chinese exports.
Bessent also indicated that China will soon lift its boycott on U.S. soybeans — a move expected to boost American farmers hit hard by the trade conflict. “As a soybean farmer myself, I can say this is a long-awaited win,” Bessent told reporters.
TikTok Ownership Deal Reached
The two sides also reportedly finalized a deal over TikTok’s U.S. operations. The video-sharing app, long targeted by the Trump administration over national security concerns, will be placed under U.S. corporate and board control, with Americans holding six of the seven seats on the U.S. board. Trump, who once threatened a full ban, is expected to announce the formal agreement during his summit with Xi.
Trump Touts Deal as Victory for American Manufacturing
President Trump has framed the trade negotiations as part of his broader strategy to bolster American industry and reduce dependency on adversarial nations. Though he had threatened a sweeping 100% tariff on Chinese imports in response to recent tensions, Bessent indicated that such measures are now unlikely.
“Tariffs will be averted,” Bessent said, crediting the productive nature of talks held alongside the ASEAN summit in Malaysia.
Trump also announced new trade agreements across Southeast Asia — including rare earth partnerships with Thailand and Malaysia and aircraft and agricultural deals with Vietnam — as part of his larger Asia-Pacific tour.
Political and Economic Impact
The outcome strengthens Trump’s foreign policy stance while potentially easing inflationary pressure from import costs. It also signals a temporary stabilization of the high-stakes U.S.-China relationship, which has dominated global markets and geopolitical headlines since Trump’s return to office.
However, analysts caution that while the framework is promising, the real test lies in implementation and political endurance. Trump will meet Xi in South Korea on Thursday to finalize the agreements and discuss next steps.
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