US and China reach framework on tariffs, soy purchases and TikTok

U.S. Treasury Secretary Scott Bessent said Sunday that negotiators from Washington and Beijing have reached a substantial framework that could be finalized when President Donald Trump and President Xi Jinping meet later this week in South Korea, following two days of talks in Malaysia. Bessent said the deal would avert an immediate escalation in tariffs, secure large Chinese purchases of U.S. agricultural products including soybeans, resolve concerns over rare-earth export controls for now, and produce a commercial arrangement for TikTok that will be formalized by the leaders.

Bessent, speaking from Kuala Lumpur after meetings with Chinese Vice Premier He Lifeng, said negotiators agreed on a regular schedule of consultations and had rolled back the immediate threat of a 100 percent tariff that Washington had floated in response to Beijing's possible export controls. He said China has stepped back from plans to expand rare-earth export licensing and will delay that expansion while both sides review the regime. Bessent also said China would begin substantial purchases of U.S. soybeans over several years and would assist with precursor chemicals tied to fentanyl production.