US-China reach framework for trade deal ahead of Trump–Xi summit

The United States and China have agreed on the framework for a potential trade deal that will be finalized when President Donald Trump meets Chinese President Xi Jinping later this week in South Korea, US Treasury Secretary Scott Bessent said on Sunday.

Speaking to CBS, Bessent said the framework includes a “final deal” on the US operations of video-sharing app TikTok and a one-year deferral of China’s tightened controls on rare earth mineral exports. He also suggested that the 100% tariff on Chinese imports threatened by Trump is unlikely to be implemented, adding that China will resume major soybean purchases from the US.

Bessent described the progress as “a substantial framework for the two leaders,” emphasizing that the agreement should “avert further tariff escalation.” Beijing confirmed that both negotiating teams had reached “a basic consensus” and agreed to finalize specific details soon.

The breakthrough comes amid efforts by both sides to de-escalate a prolonged trade war between the world’s two largest economies. The talks followed meetings between senior officials on the sidelines of the ASEAN Summit in Kuala Lumpur, where Trump is attending as part of his three-nation Asia tour.

Trump’s tariff policy has been central to his economic agenda since returning to the White House, with the president arguing that steep import duties would revive American manufacturing and jobs. His latest tariff threats targeted Chinese goods after Beijing restricted exports of rare earth minerals — materials vital for producing electronics, solar panels, and defense equipment.

China, which processes around 90% of the world’s rare earths, will now delay its export restrictions for a year while both countries work on a longer-term solution, Bessent confirmed.

Soybean exports, another key point of contention, are also set to resume. “I’m a soybean farmer myself, so I’ve felt the pain,” Bessent said. “I believe our farmers will feel very good about this deal when it’s announced.”

On TikTok, Bessent confirmed that a deal has been reached to transfer control of the platform’s US operations from Chinese parent company ByteDance to American entities, with Trump and Xi expected to formalize the agreement during their meeting. Under the arrangement, US companies will control TikTok’s algorithm, and Americans will hold six of seven board seats in its US branch.

During his visit to Malaysia, Trump also announced several regional trade initiatives. The US signed agreements with Malaysia and Cambodia and reached framework deals with Thailand and Vietnam aimed at strengthening trade ties and expanding access to critical minerals. Vietnam also agreed to purchase over $8 billion worth of Boeing aircraft and American agricultural goods.

“Our message to the nations of Southeast Asia is that the United States stands with you 100%,” Trump said in Kuala Lumpur. “We intend to be a strong and reliable partner for many generations to come.”