The United States and China have finalized a preliminary trade framework, removing the threat of massive tariffs on Chinese goods and setting the stage for a possible meeting between President Donald Trump and Chinese leader Xi Jinping later this week.
The announcement came during the opening leg of Trump’s weeklong Asia tour in Kuala Lumpur, Malaysia. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer led the US delegation in the fifth round of in-person negotiations with Chinese officials.
“I think we’ve reached a substantial framework for the two leaders who will meet next Thursday,” Bessent told ABC, noting that the previously threatened 100% tariffs on Chinese imports were “effectively off the table.”
The meeting between Trump and Xi is expected on the sidelines of the Asia-Pacific Economic Cooperation (APEC) CEO summit in South Korea, where Trump will also deliver a speech. Beijing has yet to confirm the sit-down, following its usual practice of announcing high-level meetings close to the date.
The framework touches on several key trade issues, including rare-earth export controls, Chinese purchases of American soybeans, and cooperation to combat the flow of fentanyl precursor chemicals. Bessent said the US would receive “some kind of deferral” on rare-earth restrictions, while China’s soybean purchases will be “substantial,” helping farmers in states like Iowa, Illinois, Minnesota, and Indiana.
The talks also finalized a deal on TikTok, requiring its US assets to be sold to American buyers. “As of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction,” Bessent said.
Chinese negotiator Li Chenggang, joined by Vice Premier He Lifeng, said discussions also covered port charges on China-built ships, trade truce extensions, and fentanyl tariffs. “The shocks and fluctuations” in recent weeks “were not what China wanted to see,” he said, adding that both sides will complete domestic approvals before finalizing the agreement.
Markets reacted positively to the news, with Asian stocks and US futures climbing on hopes the framework will lead to a productive Trump-Xi meeting and stabilize trade relations between the two largest economies in the world.
