The US and China agreed on the framework of the trade deal ahead of the Trump-Xi meeting

The US and China have agreed on the framework of a potential trade deal to be discussed when their respective leaders meet later this week, the US Commerce Secretary said.

Scott Bessent told the BBC’s US news partner CBS that this included a “final deal” for TikTok’s US operations and a postponement of China’s tightening controls on rare earth minerals.

He also said he did not expect the 100% tariffs on Chinese goods threatened by US President Donald Trump to go into effect, while China would resume significant purchases of US soybeans.

Both nations are keen to avoid a further escalation of a trade war between the world’s two largest economies.

Trump and Chinese President Xi Jinping are scheduled to hold talks Thursday in South Korea.

Bessent met with senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, which Trump is also attending as part of a tour of Asia. Beijing said they had “constructive” discussions.

Bessent said the countries had “reached a substantial framework for the two leaders”, adding: “Tariffs will be avoided”.

Since Trump re-entered the White House, he has imposed and threatened large tariffs on foreign imports.

But the highest tariffs he threatened targeted China, arguing the policy would help boost U.S. manufacturing and jobs.

Beijing hit back with its own measures, although the two agreed to delay implementing the levies while they pursue a trade deal.

However, Trump has threatened new 100% tariffs on Chinese goods from November if China does not lift its tightening restrictions on exports of rare earth elements – materials essential to the production of many electronics.

China processes about 90 percent of the world’s rare earth elements, which are used in everything from solar panels to smartphones, making their supply to U.S. manufacturers a key barter.

China will “delay this for a year while they review it,” Bessent told CBS This Week.

Another contentious issue is soybeans, of which China is the world’s largest buyer. As the trade war began to heat up, China has stopped all ordershurting American farmers.

Bessent hinted that the boycott may end soon, but declined to elaborate.

“I’m actually a soybean grower, so I’ve experienced that pain as well… I think we’ve addressed the farmers’ concerns,” he said.

“I believe that when the announcement of the deal with China is made public, our soybean growers will feel really good about what’s going on this season and the seasons to come for several years.”

Bessent also said a deal had been agreed on the US arm of video-sharing platform TikTok, with Trump and Xi remaining to “consummate that deal on Thursday”.

The US has sought to remove the app’s US operations from Chinese parent company ByteDance over national security concerns.

TikTok had previously been told it had to sell its US operations or risk being shut down, but Trump delayed the implementation of the ban four times to facilitate negotiations, and again extended the deadline to December.