Washington: The US and China have reached a framework for a potential trade deal to be discussed during the upcoming meeting between President Donald Trump and Chinese President Xi Jinping. This agreement, as stated by the US treasury secretary, covers several key issues including TikTok’s US operations and China’s rare earth mineral controls.

According to BBC, Scott Bessent, speaking to CBS, confirmed that a “final deal” on TikTok’s US operations has been included in the framework. Additionally, China has agreed to defer its tightened controls on rare earth minerals, which are crucial for many electronics. Bessent also mentioned that the 100% tariff on Chinese goods threatened by Trump is not expected to be enforced, while China will resume significant soybean purchases from the US.

Bessent emphasized that the countries had “reached a substantial framework for the two leaders,” indicating that the tariffs will be avoided. The Chinese government echoed this sentiment, stating that both negotiating teams “reached a basic consensus on arrangements to address their respective concerns” and agreed to further finalize the details.

Since Trump’s return to the White House, he has imposed and threatened substantial tariffs on imports from various countries, aiming to boost US manufacturing and jobs. China has been a primary target of these tariffs, leading to tensions and retaliatory measures. However, both sides agreed to delay implementing the levies while negotiating a trade deal.

Earlier this month, Trump announced an additional 100% tariff on Chinese goods in response to China’s tightened export restrictions on rare earths. China processes a significant portion of the world’s rare earths, making them a critical component for US manufacturers. However, Bessent revealed that China will delay these export controls for a year to reassess the situation.

Soybeans have also been a contentious issue in the trade dispute, with China, the world’s largest buyer, halting orders and impacting US farmers. Bessent expressed optimism that the boycott would soon end but withheld specifics. He assured that the forthcoming deal announcement would positively impact US soybean farmers.

Regarding TikTok, a deal has been reached to separate the app’s US operations from its Chinese parent company, ByteDance, over national security concerns. Trump and Xi are expected to finalize this transaction during their meeting. The agreement includes US companies controlling TikTok’s algorithm and Americans occupying most board seats for its US operations.

In addition to the China deal, the US announced trade agreements with Malaysia and Cambodia, and framework agreements with Thailand and Vietnam. Trump’s tariffs have heavily impacted the region, which relies on trade with the US. Despite maintaining a tariff rate of up to 20%, the US may grant exemptions on specific products.

In Malaysia, Trump affirmed US commitment to Southeast Asia, signing agreements for critical mineral trade with Thailand and Malaysia, expanding US access to rare earth elements. Vietnam and the US announced “unprecedented” trade access, including Vietnam’s agreement to purchase Boeing jets and American agricultural products worth over $8 billion.