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A top US official has indicated that the United States and China will likely reach a trade agreement during an upcoming meeting between President Donald Trump and Chinese President Xi Jinping.
Some shit you should know before you dig in: If you’re unaware, the US-China trade relationship has been an absolute rollercoaster over the past year. It kicked off with the Trump administration slapping significant tariffs on Chinese imports to counter what it described as intellectual property theft, fentanyl production, and trade imbalances. China responded with its own retaliatory tariffs, igniting a tit-for-tat trade war that sent shockwaves through global markets. After extended negotiations, both countries agreed to a temporary truce that stabilized relations, until new tensions surfaced. Earlier this month, China announced tighter controls on the export of rare earth minerals, which are critical components in US defense systems, semiconductors, and clean energy technologies. The US, heavily reliant on China’s near monopoly in refining these materials, saw the move as a geopolitical threat. In response, President Trump announced plans to impose a 100% tariff on all Chinese goods starting November 1 should China proceed with the restrictions.
What’s going on now: In a notable development, Treasury Secretary Scott Bessent announced that US and Chinese negotiators have reached a “very substantial framework” for a trade agreement after two days of high-stakes talks in Malaysia. Speaking to NBC News, Bessent credited the threat of Trump’s proposed 100% tariffs for giving the US “a great deal of negotiating leverage” and said that the framework, if finalized, would avert the tariffs and reopen dialogue on a broader range of critical issues. “I’m also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed,” he said, referring to China’s tightening grip on materials essential for advanced electronics and defense technologies.
Bessent also told CBS that the framework includes “a final deal on TikTok’s US operations” and confirmed that China will “resume substantial soybean purchases” from American farmers. Chinese officials characterized the talks as “constructive,” noting that both sides reached “a basic consensus on arrangements to address their respective concerns.” Chinese Trade Representative Li Chenggang, who had previously clashed publicly with Bessent, said that despite the US’s tough stance, the discussions were productive and marked by “preliminary consensus” on issues like fentanyl export controls, shipping levies, and extending the current trade truce.
This all comes ahead of a highly anticipated meeting between President Trump and President Xi Jinping in South Korea later this week, which both sides suggest could be pivotal not just for trade but for national security. According to Bessent, the Trump-Xi summit will address a sweeping agenda that includes the US’s concerns about China’s handling of fentanyl precursor chemicals, its expanding influence in Taiwan, and even the opaque state of Beijing’s nuclear weapons program.
