US, China reach framework for potential trade deal

The US and China have reached an agreement on the framework of a potential trade deal, which will be discussed during the meeting between President Donald Trump and his Chinese counterpart, Xi Jinping, US Treasury Secretary Steven Mnuchin said on Sunday (October 26). The meeting between the two leaders is scheduled to be held on Thursday (October 30) in South Korea.

‘100 per cent additional tariffs on China unlikely’

Speaking to CBS, Bessent said that the framework includes a "final deal" regarding TikTok's operations in the US and a deferral on China's curbs on the export of rare earth minerals.

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Bessent also said that the prospect of the US executing Trump’s threat of slapping an additional 100 per cent tariffs on Chinese goods was unlikely, adding that China will substantially resume importing soybeans from the US, reported the BBC. The report further stated that the world’s two largest economies are keen on avoiding further escalation in the ongoing trade war.

Bessent meets Chinese trade officials

Earlier, Bessent had met senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia. US President Donald Trump is also attending the event on his Asia tour.

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Bessent said that the US and China had "reached a substantial framework for the two leaders." The US Treasury Secretary also said that the tariffs would be averted.

‘Basic consensus,’ says China

The Chinese government, in a statement, said that the two negotiating teams had reached a “basic consensus on arrangements to address their respective concerns.”

"Both sides agreed to further finalise specific details," added the Chinese government.

The backdrop

The development comes at a time when President Trump has imposed stiff tariffs on imports from several countries, with the highest levies being imposed on imports from China.

China has responded with measures of its own, including imposing restrictions on the export of rare earth materials, a key ingredient for the defence manufacturing sector in the US.

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Trump had earlier accused China of becoming “very hostile” and holding the world captive. China holds the lion’s share when it comes to rare-earth minerals, as it processes around 90% of the world's rare earths.

However, Bessent said that Beijing will "delay that for a year while they re-examine it,” reported BBC.