The United States and China have established a framework for a potential trade agreement, which will be discussed during upcoming meetings between President Trump and Chinese President Xi Jinping in South Korea. According to U.S. Trade Secretary Scott Bessent, the framework includes an agreement regarding TikTok’s operations in the U.S. and a postponement of China’s stricter controls on rare earth minerals.
Bessent indicated he does not expect the implementation of a proposed 100% tariff on Chinese goods, a measure threatened by President Trump. Additionally, he noted that China plans to resume significant purchases of soybeans from the U.S., potentially providing relief to American farmers affected by past trade tensions.
The discussions followed a meeting where Bessent engaged with senior Chinese trade officials in Malaysia during the Association of Southeast Asian Nations (ASEAN) summit. Bessent described the talks as “constructive,” and stated that the two countries are aiming to prevent further escalation of their ongoing trade conflict.
Amid these negotiations, there have been mutual threats of tariffs, with Trump indicating that new tariffs could be put in place if China does not revert its restrictions on rare earth exports. These minerals are crucial for the manufacturing of various electronics, and China accounts for around 90% of their global supply.
On the soybean front, Bessent noted that the trade war had previously led to China halting soybean orders, which negatively impacted U.S. farmers. He expressed optimism that concerns among farmers would be addressed in the forthcoming deal. Furthermore, the negotiations surrounding TikTok involve concerns about national security, as the U.S. has sought to separate the app’s U.S. operations from its Chinese parent company, ByteDance. A deadline for a potential sale has been extended to December.
Source: https://www.bbc.com/news/articles/c1lqj5lz4geo?at_medium=RSS&at_campaign=rss