US and China Reach Framework for Trade Deal Ahead of Xi-Trump Meeting
Just days ahead of a crucial meeting between US President Donald Trump and Chinese President Xi Jinping, the two nations have agreed on a framework for a trade deal. The agreement, forged during the Association of South-East Asian Nations (Asean) summit in Malaysia, aims to alleviate tensions that had threatened to escalate into an all-out global trade war.
According to Treasury Secretary Scott Bessent, the pact would remove the threat of imposing 100% tariffs on Chinese imports, set to expire on November 1st. The deal also includes provisions for a final agreement on the sale of TikTok in the US. China has agreed to delay export controls on minerals used in fighter jets, smartphones, and electric vehicles for a year as part of the truce.
Li Chenggang, China's top trade negotiator, stated that both sides had reached a "preliminary consensus" and will next undergo their respective internal approval processes. The US position has been perceived as tough, with Li acknowledging that Chinese teams have engaged in constructive exchanges to address concerns.
The agreement is seen as a significant relief for the global economy, which had been bracing for an escalation of trade tensions between the two economic superpowers. Months of escalating tensions were triggered by Trump's "liberation day" tariff announcement outside the White House in April. With just days left before their current tariff truce was due to end, Xi showed he would not submit to Trump's threats.
However, Beijing had taken a firm stance earlier, imposing controls on exports of rare earth minerals and stopping buying soya beans from the US. China is the US's biggest soya bean customer, accounting for half of all $24bn (£18bn) in exports in 2024.
US Secretary Bessent expressed optimism about the framework, anticipating an extension of the tariff truce with China beyond its November expiry date and a revival of substantial purchases of US soya beans. The deal has also brought relief to Brazil, where tensions between the US and the South American country have escalated since August.
With just days to go before their meeting in South Korea, Trump expressed confidence that a successful framework would be put forward for discussion on Thursday.
Just days ahead of a crucial meeting between US President Donald Trump and Chinese President Xi Jinping, the two nations have agreed on a framework for a trade deal. The agreement, forged during the Association of South-East Asian Nations (Asean) summit in Malaysia, aims to alleviate tensions that had threatened to escalate into an all-out global trade war.
According to Treasury Secretary Scott Bessent, the pact would remove the threat of imposing 100% tariffs on Chinese imports, set to expire on November 1st. The deal also includes provisions for a final agreement on the sale of TikTok in the US. China has agreed to delay export controls on minerals used in fighter jets, smartphones, and electric vehicles for a year as part of the truce.
Li Chenggang, China's top trade negotiator, stated that both sides had reached a "preliminary consensus" and will next undergo their respective internal approval processes. The US position has been perceived as tough, with Li acknowledging that Chinese teams have engaged in constructive exchanges to address concerns.
The agreement is seen as a significant relief for the global economy, which had been bracing for an escalation of trade tensions between the two economic superpowers. Months of escalating tensions were triggered by Trump's "liberation day" tariff announcement outside the White House in April. With just days left before their current tariff truce was due to end, Xi showed he would not submit to Trump's threats.
However, Beijing had taken a firm stance earlier, imposing controls on exports of rare earth minerals and stopping buying soya beans from the US. China is the US's biggest soya bean customer, accounting for half of all $24bn (£18bn) in exports in 2024.
US Secretary Bessent expressed optimism about the framework, anticipating an extension of the tariff truce with China beyond its November expiry date and a revival of substantial purchases of US soya beans. The deal has also brought relief to Brazil, where tensions between the US and the South American country have escalated since August.
With just days to go before their meeting in South Korea, Trump expressed confidence that a successful framework would be put forward for discussion on Thursday.
they've been so tense lately and it could've gone really badly if they didn't find a way out of it now the us isn't gonna slap 100% tariffs on chinese imports which is huge because that would've messed with so many people's lives i mean like my friends who work in manufacturing or our families who buy stuff from china online yeah it's a good thing they found a compromise and it seems like both sides are still optimistic about it 
. Both sides seem to be coming around after all the threats and tariffs were being slapped left and right. It's crazy how much was at stake - global economic slowdown, markets crashing... it could've gotten really bad if they couldn't reach an agreement.
and both sides have agreed to some common ground 
but still gotta iron out the details 
. The US is being all tough and stuff 
while China is keeping its cool 
. What's weird is how they managed to agree on so many things 
, like delaying export controls and setting up a deal for TikTok 
. It's like they both wanted to avoid an economic meltdown 
.
and the US soybean market is looking up 
. I'm curious to see how this all plays out in South Korea on Thursday 
i was getting so stressed about the whole trade war thing with china and us it's been affecting everyone globally, especially small businesses and farmers who are already struggling to stay afloat anyway, but now it seems like we might be able to breathe a sigh of relief 
about this trade deal framework finally coming together! It's crazy how tensions were escalating, and everyone was worried we'd see a global trade war 
. The fact that US and China have agreed to remove the threat of 100% tariffs is a massive win for the economy 
. This should help stabilize global supply chains and avoid any more disruptions 
. And who knows, maybe this deal will even lead to some positive changes in the way we buy and sell soybeans 
.
. Let's keep our fingers crossed that this framework holds up and we can finally start seeing some positive trade developments 
. Fingers crossed that both sides will work together from now on 