The United States and China have outlined the basic terms of a potential trade agreement that may be finalized later this week by Presidents Donald Trump and Xi Jinping, in a bid to prevent further tariff escalation and delay China’s restrictions on rare earth exports.
During high-level discussions on Sunday, U.S. Treasury Secretary Scott Bessent confirmed that President Trump’s proposed 100% tariffs on Chinese imports, which were set to take effect on November 1, have been withdrawn as a result of negotiation progress. Additionally, China will reportedly delay the implementation of export licensing for rare earth minerals and magnets by one year, granting further breathing room for the talks.
The framework agreement is intended to be formally approved during a meeting between Trump and Xi scheduled for Thursday, to be held on the sidelines of the APEC summit in Gyeongju, South Korea. Beijing, however, has yet to officially announce the planned encounter.
Bessent indicated that the existing truce on tariffs is expected to be extended past its initial expiration date of November 10. As part of the accord, China will resume large-scale purchases of U.S. soybeans, which had been placed on hold in September.
In a separate development, Bessent confirmed that the two sides have reached a final agreement regarding TikTok’s U.S. operations. Under the deal—details of which will be formalized by Trump and Xi in South Korea—American investors will control a majority stake, leaving ByteDance, TikTok’s parent company, with less than 20%.
Other topics anticipated for Thursday’s summit include U.S. soybean exports, the status of Taiwan, the detention of Hong Kong media tycoon Jimmy Lai, and avenues for U.S.-China cooperation on U.S.-Russia relations.
