| BBC World News | October 26, 2025
The United States and China have reached a framework agreement for what could become one of the most significant trade deals between the two economic superpowers in recent years, U.S. Trade Secretary Scott Bessent announced on Sunday.
The preliminary deal, described as a “substantial breakthrough,” comes just days before U.S. President Donald Trump and Chinese President Xi Jinping are due to meet in South Korea for direct talks aimed at resolving their escalating trade tensions.
A Tentative Framework With Global Implications
According to Secretary Bessent, the framework includes several crucial elements designed to ease economic frictions between Washington and Beijing. These include:
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A final agreement on the future of TikTok’s U.S. operations,
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A deferral of China’s tightened export controls on rare earth minerals,
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And a resumption of large-scale soybean purchases by China from American farmers.
“These are important first steps toward stabilizing the relationship between the world’s two largest economies,” Bessent told CBS. “We believe the framework provides a clear pathway toward a full and final deal to be discussed by our presidents this week.”
Avoiding a Trade War Escalation
The news of the framework comes amid growing concerns that Trump’s threats to impose 100% tariffs on all Chinese imports could ignite another round of economic confrontation.
Since returning to the White House, President Trump has made tariff pressure a cornerstone of his trade strategy, arguing it strengthens U.S. industry and manufacturing. However, the approach has drawn criticism from economists who warn it could disrupt global supply chains and hurt U.S. consumers.
Beijing, in response, introduced its own retaliatory measures, including restrictions on exports of rare earth elements — materials that are vital for manufacturing high-tech goods such as smartphones, electric vehicles, and solar panels.
China currently processes nearly 90% of the world’s rare earth minerals, giving it a powerful leverage point in global trade negotiations.
Under the new framework, China has agreed to delay its export restrictions for one year while reviewing its policy. “That’s an important sign of goodwill,” Bessent said. “It keeps supply chains open and allows our manufacturers to breathe again.”
TikTok and Technology Concerns
One of the more sensitive elements of the framework is the TikTok agreement.
For years, U.S. officials have raised national security concerns about the Chinese-owned video-sharing app, arguing that user data could be accessed by Beijing. Under the current plan, TikTok’s U.S. operations will be separated from its Chinese parent company ByteDance, ensuring that American user data remains within U.S. jurisdiction.
Bessent described the arrangement as “a commercially sound and secure solution” that will be finalized when Trump and Xi meet later this week.
“The transaction is ready for consummation on Thursday,” he told CBS. “Both leaders are aware of the details, and we expect an official announcement soon.”
Relief for U.S. Farmers
The trade tensions have also deeply affected U.S. soybean farmers, as China — the world’s largest soybean importer — halted orders in retaliation to earlier tariffs.
Bessent, who revealed that he himself is a soybean farmer, said he understood their frustration and confirmed that the framework includes a commitment from China to resume substantial soybean imports.
“I believe our farmers will feel real relief,” he said. “Once the deal is made public, they will see that better times are ahead, not just for this season but for years to come.”
This development could inject much-needed optimism into America’s agricultural sector, which has faced months of uncertainty due to fluctuating trade policies.
Diplomatic Backdrop: ASEAN and Asia Tour
The framework announcement followed side meetings at the ASEAN summit in Malaysia, where Secretary Bessent held talks with senior Chinese trade officials.
Both sides described the discussions as “constructive,” signaling a thaw in relations that have been tense since Trump’s re-election and his subsequent push for more aggressive trade measures.
The meeting between Trump and Xi in South Korea will be the first face-to-face encounter between the two leaders since the beginning of Trump’s second term — and could define the trajectory of U.S.–China relations for the remainder of the decade.
Looking Ahead
Analysts say the framework signals a rare moment of cooperation in an otherwise adversarial relationship.
“It’s a cautious but meaningful breakthrough,” said Dr. Karen Liu, a trade policy expert at the University of Singapore. “If both sides can maintain this tone, the global economy could finally see some stability after years of volatility.”
However, experts also warn that the deal remains fragile, and that deep ideological and strategic divides — over technology, Taiwan, and global influence — still loom large.
Trump is expected to travel from Seoul to Tokyo and Beijing later in the week, before concluding his Asia tour at the APEC Summit, where he is expected to meet leaders from across the Pacific region.
Conclusion
For now, the announcement of a U.S.–China trade framework offers a glimpse of hope to investors and businesses worldwide. If successful, it could pave the way for a historic economic reconciliation between two powers whose rivalry has defined global politics for years.
The world now awaits the meeting between President Trump and President Xi — a summit that could determine whether this framework turns into a lasting peace or just another fleeting truce in their long-running trade war.
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