- Framework includes final TikTok deal and delay on China’s rare earth controls.
- Bessent says a 100% tariff on Chinese goods is unlikely to take effect.
- China to resume large-scale soybean purchases from the US.
The US and China have come to an agreement on a framework for a possible trade deal, which will be on the agenda when President Donald Trump and President Xi Jinping meet later this week in South Korea, as reported by US Treasury Secretary Scott Bessent. Bessent shared with CBS that this framework includes a “final deal” regarding TikTok’s operations in the US and a postponement of China’s stricter controls on rare earth minerals. He also mentioned that he doesn’t anticipate the 100% tariff on Chinese goods that Trump has threatened to actually go into effect, and confirmed that China will start making significant soybean purchases from the US again, reports BBC.
Constructive Talks and Consensus on Key Issues
Bessent met senior Chinese trade officials on the sidelines of the ASEAN Summit in Malaysia, where both sides described the talks as “constructive.” He stated that the countries had “reached a substantial framework for the two leaders,” and assured that “the tariffs will be averted.” The Chinese government also said both negotiating teams “reached a basic consensus on arrangements to address their respective concerns,” and “agreed to further finalise specific details.”
Trump’s Tariff Policy and Rare Earths Dispute
Since his return to the White House, President Trump has implemented and threatened various tariffs on imports to support US manufacturing and job growth. China has been the main focus of these tariffs, leading to retaliatory actions and heightened trade tensions. Earlier this month, Trump warned of a potential 100% tariff on Chinese goods starting in November after Beijing tightened its rare earth exports, which are essential for electronics and renewable technologies. China, which processes about 90% of the world’s rare earths, has agreed to postpone these restrictions for a year while it reassesses the situation.
Soybean Purchases and Support for US Farmers
China’s halt on soybean imports during the trade dispute severely affected US farmers. Bessent, himself a soybean farmer, said on This Week: “I’m actually a soybean farmer, so I have felt this pain too… I think we have addressed the farmers’ concerns.”
He added that once the deal is announced, “our soybean farmers will feel really good about what’s going on for this season and the coming seasons for several years.”
Progress on TikTok Deal
Bessent confirmed that a deal regarding TikTok’s US operations is in place, allowing Trump and Xi to “consummate that transaction on Thursday.” The US has been eager to separate TikTok’s US business from its Chinese parent company, ByteDance, due to concerns over national security. Although Trump initially aimed for a ban on the app, he has postponed enforcement multiple times and has now pushed the deadline to December. Under the new agreement, US companies will take charge of TikTok’s algorithm, and Americans will occupy six out of seven board seats for its US operations.
Wider Regional Engagement and New Trade Deals
During his Asia tour, Trump also announced multiple trade deals with Malaysia and Cambodia, and framework agreements with Thailand and Vietnam. “Our message to the nations of South East Asia is that the United States is with you 100% and we intend to be a strong partner for many generations,” Trump said in Malaysia.
The US signed agreements with Thailand and Malaysia to expand access to critical minerals, and Vietnam agreed to purchase Boeing jets worth over $8 billion along with American agricultural goods, marking what the White House called “unprecedented trade access.”
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Source: BBC
