US and China Establish Trade Deal Framework Ahead of Key Meeting

Tue Oct 28 2025 00:12:20 GMT+0200 (Eastern European Standard Time)

As US President Donald Trump and Chinese President Xi Jinping prepare for critical talks in South Korea, the two nations have reached a framework for a trade deal, addressing key issues including TikTok and tariffs on goods.

The US and China have agreed on a framework for a potential trade deal, set to be discussed during upcoming talks between President Trump and President Xi Jinping in South Korea. Key elements include the future of TikTok's US operations and a pause on China's rare earths restrictions. Both nations aim to de-escalate current trade tensions and avoid implementing extensive tariffs. As negotiations evolve, concerns for farmers and bilateral trade dynamics underline mutual interests between the two largest economies.

The US and China have agreed the framework of a potential trade deal that will be discussed when their respective leaders meet later this week, the US treasury secretary has said.

Scott Bessent told the BBC's US news partner CBS that this included a final deal on TikTok's US operations and a deferral on China's tightened rare earth minerals controls.

He also mentioned that he did not anticipate the 100% tariff on Chinese goods threatened by President Donald Trump coming into force, while China will resume substantial soybean purchases from the US.

Both nations are seeking to avoid further escalation in a trade war between the world's two largest economies.

Trump and Chinese President Xi Jinping are due to hold talks on Thursday in South Korea.

Bessent met senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (Asean) summit in Malaysia, which Trump is also attending as part of a tour of Asia. Beijing said they had constructive discussions.

Bessent stated the countries had reached a substantial framework for the two leaders, reaffirming that the tariffs will be averted.

The Chinese government has acknowledged that both negotiating teams reached a basic consensus on arrangements to address their respective concerns, agreeing to further finalize specific details.

Trump's tariff tactics

Since Trump re-entered the White House, he has imposed and threatened sweeping tariffs on imports from various countries, arguing that this policy would boost US manufacturing and jobs. The introduction of tariffs has prompted many nations, including the UK, to strike new deals with the US.

However, the steepest levies have been aimed at China, which has retaliated by implementing its own measures. Both sides agreed to hold off on implementing these measures while negotiating a trade deal.

Earlier this month, Trump warned he would impose an additional 100% tariff on Chinese goods due to China tightening restrictions on the export of rare earths, materials crucial for electronics production. China controls around 90% of the world's rare earth supply.

According to Bessent, China will delay these controls for a year while reassessing its policies.

Soybean Purchase Prospects

As one of the world's largest soybean buyers, China had halted orders during the trade dispute, severely impacting US farmers. Bessent hinted at the resumption of these orders, asserting confidence that the announcement of the deal would reassure soybean farmers for the upcoming season.

TikTok Negotiations

Bessent also disclosed that an agreement has been reached regarding TikTok's US operations, stating that Trump and Xi will finalize this transaction. The US has pursued the separation of TikTok's US arm from its Chinese parent company due to national security concerns.

Initially threatened with a ban, TikTok has had its deadline delayed multiple times to facilitate ongoing negotiations, with the current deadline extended to December.

The White House previously announced plans for US companies to control TikTok’s algorithm, allowing American representatives to hold six of seven board seats in its US operations.

Recent Trade Agreements

On Sunday, the US also secured several trade deals with Malaysia and Cambodia, along with framework agreements with Thailand and Vietnam. These countries are heavily reliant on trade with the US and have felt the impact of Trump's tariffs.

Trump emphasized the US's commitment as a reliable partner, highlighting agreements involving critical minerals with Thailand and Malaysia to broaden access beyond China.