U.S. And China Reach Preliminary Trade Framework

On the eve of a planned meeting between former President Trump and Xi Jinping, the U.S. and China reached a preliminary trade framework, providing a temporary buffer to their long-standing economic tensions.

According to reports, the framework was finalized during the ASEAN summit. Both sides agreed to delay possible high tariffs on certain Chinese goods and reached preliminary consensus on U.S. soybean exports and Chinese restrictions on key resources like rare earths.

The agreement states that the U.S. will temporarily ease some tariffs in exchange for China’s commitment to increase purchases of U.S. agricultural products. China said that although a “preliminary consensus” has been reached, it still requires domestic approval to take effect. Both sides emphasized that the framework is not a final agreement but aims to create a positive negotiating atmosphere ahead of the upcoming Trump-Xi meeting.

Analysts view the framework as a preventive measure to avoid a full-scale trade war. If successfully implemented, U.S. exporters could temporarily ease tariff pressures, while Chinese companies would benefit from stable supply of rare earths and other resources. However, key issues such as intellectual property protection, technology transfer, and tariff schedules remain unresolved, leaving markets cautious about the agreement’s durability.