The United States and China have reportedly reached a preliminary framework for potential trade deal ahead of a high-level meeting between their leaders later this week.
The US Treasury Secretary, Scott Bessent said the agreement includes two key points which are completing a final decision about TikTok's business operations in the US and temporarily postponing China's new restrictions on rare earth mineral exports, as per BBC.
Tensions between the world’s two largest economies escalated after US President Donald Trump threatened a massive increase in tariffs on Chinese products.
This warning came in response to Beijing's stricter rules on rare earth exports.
Both the US and China are now trying to prevent the trade conflict from getting even worse.
The Treasury Secretary said the countries had "reached a substantial framework for the two leaders, The tariffs will be averted."
Bessent, who met with top Chinese trade officials during the ASEAN summit in Malaysia which trump is also attending on his Asia tour, also noted that China will begin buying large amounts of soybeans from the US again.
China described these recent meetings as "constructive," indicating they were positive and productive.
The Chinese government further stated that "both negotiating teams "reached a basic consensus on arrangements to address their respective concerns."
President Trump and Chinese President Xi are scheduled to meet for talks on Thursday in South Korea.
