The United States and China have reached a trade deal framework ahead of a highly anticipated meeting between President Donald Trump and Chinese leader Xi Jinping. According to Treasury Secretary Scott Bessent, the agreement includes plans to halt a proposed 100% tariff on Chinese goods set to take effect on November 1. This development comes as a significant step forward in the ongoing trade negotiations between the two nations.
The framework agreement was reached during negotiations between Bessent and Chinese Vice Premier He Lifeng, as well as top trade negotiator Li Chenggang, at the ASEAN Summit in Malaysia. As part of the deal, Beijing has agreed to postpone its export restrictions on rare earth minerals for one year, allowing talks to continue. Additionally, the agreement finalizes the sale of TikTok’s US operations and the resumption of Chinese purchases of US soybeans, which had been suspended since September due to the tariff dispute.
Li confirmed that the US and China have reached a “preliminary consensus” after “intense” negotiations, stating that internal approval is now required. The White House has confirmed the Trump-Xi meeting for October 30 on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea. This meeting will be the first between the two leaders since 2019.
The trade deal framework is seen as a significant development ahead of the Trump-Xi meeting, where discussions are expected to cover a range of issues, including trade, nuclear power, and China’s purchases of Russian oil. Trump has expressed hopes of reaching agreements with Xi on these issues, while Beijing has maintained that it has a legitimate right to maintain normal economic, trade, and energy cooperation with all countries, including Russia.
The US has been pressuring China to halt its imports of Russian oil, which Beijing has described as a “typical move of unilateralism, bullying, and economic coercion.” Russia has become a major supplier of oil to both China and India since 2022, with President Vladimir Putin cautioning Western nations against adopting a “colonial tone” towards the two countries. The outcome of the Trump-Xi meeting is likely to have significant implications for global trade and economic relations.
