Trade Deal Nears As US, China Agree On Framework Before Trump–Xi Talks

The United States and China have agreed to a framework ahead of President Donald Trump and Chinese leader Xi Jinping meeting later this week. A trade deal between the United States and China is drawing closer, officials from the world's two largest economies said on Sunday.

The US treasury secretary Scott Bessent told CBS that the deal included a "final deal" on TikTok's US operations and a deferral on China's tightened rare earth minerals controls. 

Trump is set to meet Xi in South Korea on Thursday with both nations seeking to avoid further escalation in a trade war between the world's two largest economies.

Trump has also expressed confidence that an agreement was at hand, saying the Chinese "want to make a deal and we want to make a deal.”

The framework also includes China’s purchase of substantial soybean from the US. The framework toward a possible agreement came during the annual summit of the Association of Southeast Asian Nations, in Kuala Lumpur.

Bessent met senior Chinese trade officials on the sidelines of the summit with Beijing claiming they had "constructive" discussions.

The Chinese government said in a statement that both negotiating teams "reached a basic consensus on arrangements to address their respective concerns,” BBC reported. 

Trump had earlier imposed an additional 100 percent levy on Chinese goods set to come into effect from November. This was done in response to China tightening restrictions on export of rare earths. It processes around 90 percent of the world's rare earths. Following this, the US president accused Beijing of "becoming very hostile" and trying to hold the world "captive".