Bessent told CBS, the BBC's US news partner, that the framework includes a final agreement on TikTok's US operations and a deferral of China's tightened controls on rare earth mineral exports. He added that he does not expect the 100 percent tariff on Chinese goods threatened by President Trump to come into force, while China will resume large-scale soybean purchases from the US.
Both nations are aiming to de-escalate tensions following months of uncertainty in global trade. The meeting between Trump and Xi is scheduled to take place on Thursday in South Korea, as part of the US president's Asia tour.
Bessent met senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (ASEAN) Summit in Malaysia, where both sides described their talks as 'constructive.' He said the countries had 'reached a substantial framework for the two leaders,' adding that 'the tariffs will be averted.'
In a statement, China's government said both negotiating teams 'reached a basic consensus on arrangements to address their respective concerns' and that 'both sides agreed to further finalise specific details.'
Since returning to the White House, President Trump has imposed or threatened sweeping tariffs on imported goods from several countries, arguing that they would strengthen US manufacturing and create jobs. While this approach has led to new trade agreements with countries such as the UK, it has also triggered sharp disputes with China, the largest target of US tariffs.
Earlier this month, Trump announced plans to impose an additional 100 percent tariff on Chinese goods starting in November, in response to Beijing's decision to tighten controls on exports of rare earth elements minerals crucial to the production of smartphones, electric vehicles, and renewable-energy components. At the time, Trump accused China of 'becoming very hostile' and trying to 'hold the world captive.'
China, which processes nearly 90 percent of the world's rare earth minerals, has now agreed to delay those restrictions for one year while reassessing the policy, Bessent confirmed during a separate television interview.
Another key issue in the discussions is the soybean trade, a sector that has suffered since China halted imports during the height of the trade war. Bessent, himself a soybean farmer, suggested that an agreement would bring relief to US producers.
'I'm actually a soybean farmer, so I have felt this pain too,' he said. 'I believe when the announcement of the deal with China is made public, our soybean farmers will feel really good about what's going on for this season and the coming seasons for several years.'
The proposed trade framework signals a potential turning point in relations between the world's two largest economies, which have been locked in tariff battles and technology disputes since Trump's return to office.
Rania Umutoni
Source : https://en.igihe.com/news/article/us-and-china-agree-on-preliminary-trade-framework-to-ease-tensions
