US and China Set to Seal Breakthrough Trade Deal: Trump Hints at ‘Very Good’ Deal with Xi Jinping

Key Points:

The two largest economies in the world, the United States and China, are all set to sign a trade deal that would ease the long-standing tension between the two nations. U.S. Treasury Secretary Scott Bessent spoke about the draft of a framework agreement ahead of a scheduled meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea. The proposed deal would be one of the most important trade agreements between the two countries in recent years, covering agricultural purchases, export controls, and tariff relief.

Reports suggest that China has agreed to make significant purchases of American agricultural products, especially soybeans, which had experienced a sharp decline during previous rounds of tariff disputes. The deal will also ensure that the U.S. will no longer threaten to impose a 100 percent tariff on Chinese goods, which had stirred quite a whirlwind in international markets. The framework also ensures China’s commitment to postponing new export restrictions on rare-earth minerals, which are essential to the American defense and technology industries.

The agreement also addresses major global issues such as the control of precursor chemicals used in the production of fentanyl, as well as supply chains and shipping regulations, along with economic concerns. Both sides expressed optimism about reaching a final agreement during the Trump–Xi meeting, and officials described the recent negotiations held in Kuala Lumpur as “constructive.”

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This possible agreement is significant for its potential to stabilize trade flows and impact the world economy. American farmers could receive much-needed relief from the renewed Chinese demand for soybeans after years of declining exports. Beijing seeks to reduce external pressure in the face of slowing domestic growth and global competition, while Washington aims to protect national security interests by guaranteeing access to vital minerals.

Donald Trump described the possible deal as a “very good” step, keeping his tone transactional yet firm. He seems to have a strategy focused on securing real benefits for American industries and workers, especially in manufacturing and agriculture. However, the framework is still in its early stages and may not resolve deeper structural disputes such as those related to intellectual property, market access, and Chinese government subsidies. According to reports, Beijing has demanded that the U.S. lift its unilateral tariffs before finalizing any further commitments.

The final draft of the agreement is expected to be presented at the upcoming summit in South Korea by both countries. The outcome of the meeting could determine whether this agreement becomes a short-term pause in one of the most important economic rivalries or a long-term step toward stabilizing bilateral trade. [Rh]

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