US and China Set to Finalize Trade Deal Before Trump-Xi Summit

Tue Oct 28 2025 18:39:48 GMT+0200 (Eastern European Standard Time)

In a significant move to ease trade tensions, the US and China have outlined the framework for a new trade agreement that includes pivotal discussions on TikTok and soybean purchases as leaders prepare to meet this Thursday.

The US and China have reached a preliminary agreement on a trade deal, with key points including the fate of TikTok's US operations and a commitment from China to resume soybean imports from the US. As President Trump and President Xi Jinping plan to meet in South Korea, both nations aim to avoid escalating trade conflicts, setting the stage for crucial negotiations.

The US and China have agreed on a framework for a potential trade deal to be discussed in upcoming talks between President Trump and President Xi Jinping. This agreement suggests crucial developments regarding TikTok's operations in the US and a deferral of China's stricter regulations on rare earth minerals, as stated by US Treasury Secretary Scott Bessent.

Bessent conveyed optimism about avoiding the anticipated 100% tariffs on Chinese goods threatened by Trump, while noting that China is set to restart significant purchases of soybeans from the US. Both countries are eager to prevent further escalation in their ongoing trade war.

During their discussions scheduled for Thursday in South Korea, both presidents aim to solidify these agreements, which have the potential to reshape trade relations between the world's two largest economies.

Bessent remarked on constructive conversations held with Chinese trade officials at the ASEAN summit, indicating that the countries had reached a basic consensus.

Trade tariffs imposed by Trump have induced retaliatory actions from China. However, progress appears to have been made, with suggestions that the countries could avert the implementation of additional tariffs while finalizing a trade deal.

In addition to TikTok's deal—significant amid national security concerns—the negotiations potentially provide a pathway for American soybean farmers, who have faced hardships due to previous trade restrictions by China. Bessent’s comments reflect a renewed hope in the agriculture sector amidst trade negotiations.

Further complicating the trade landscape are rare earth elements critical for tech manufacturing, with China's current control over these resources posing a strategic challenge for the US. The potential for easing restrictions on these materials adds another layer to the discussions ahead of the presidential meeting.

As part of Trump's broader strategy in Asia, further trade agreements were announced with Malaysia and Cambodia, showcasing an ongoing commitment to strengthen ties in the region.