What's happened
Trade negotiations between the US and China have produced a framework that halts imminent tariffs and advances discussions on TikTok, rare earths, and agricultural purchases. Both sides aim for a summit in South Korea, with optimism tempered by caution over implementation and deeper strategic issues.
What's behind the headline?
The recent negotiations reflect a strategic shift by both the US and China towards stabilizing their trade relationship amid mounting economic pressures. The framework indicates a mutual interest in avoiding a full-scale trade war, especially with the threat of tariffs and export controls looming. However, the underlying structural tensions—such as China's near-monopoly on rare earths and US concerns over technology and security—remain unresolved. The agreement is likely to be short-lived if deeper issues are not addressed, as both sides continue to calibrate their positions to appear strong ahead of the Xi-Trump summit. The focus on specific issues like TikTok and agricultural trade suggests a tactical approach rather than a fundamental resolution of strategic rivalry, which will persist beyond the immediate negotiations.
What the papers say
The South China Morning Post reports that both Chinese and US officials described the Kuala Lumpur talks as 'constructive,' with US Treasury Secretary Scott Bessent indicating that threats of tariffs and export controls are now 'off the table.' The NY Post highlights Trump's optimism and the tentative framework addressing tariffs, TikTok, and rare earths, emphasizing the importance of the upcoming South Korea summit. The Guardian notes that the agreement is a 'preliminary consensus' and underscores the cautious optimism, with Chinese officials stressing the need for internal approval processes. Business Insider UK echoes these sentiments, reporting that the US and China have reached a 'substantial framework' and that the threat of 100% tariffs has been effectively removed, though the deeper strategic rivalry remains unresolved. Overall, the coverage suggests a temporary easing of tensions with an eye on the upcoming summit, but warns that fundamental disagreements will likely resurface.
How we got here
Tensions escalated earlier this year with US threats of 100% tariffs and China's expansion of export controls on rare earths. Negotiations have been ongoing since May, with recent talks in Kuala Lumpur leading to a preliminary consensus. The upcoming Trump-Xi meeting in South Korea is seen as a critical moment for finalizing the deal and stabilizing relations.
Go deeper
Common question
-
What Does the US-China Trade Deal Mean for the Global Economy?
The recent developments in US-China trade negotiations have sparked widespread interest. With a framework for a deal now in place, many are wondering how this will impact global markets, tariffs, and international relations. Below, we explore the key points of the agreement, its potential effects, and what it could mean for major tech companies like TikTok. Keep reading to find out what’s next in this high-stakes diplomatic game.
More on these topics
-
Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
-
Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
-
Scott K. H. Bessent is an American hedge fund manager. He is the founder of Key Square Group, a global macro investment firm, and worked as a financier for George Soros.
Bessent has been a major fundraiser and donor for Donald Trump. He was an economic ad
-
Jamieson Lee Greer (born 1979 or 1980) is an American government official, attorney and former Air Force officer who is serving as the 20th United States trade representative in the second Trump administration since February 2025. A member of the Republic
-
He Lifeng is a Chinese politician and the current Minister in charge of the National Development and Reform Commission. Earlier in his career, he worked in Fujian province and Tianjin.
-
TikTok/Douyin is a Chinese video-sharing social networking service owned by ByteDance, a Beijing-based Internet technology company founded in 2012 by Zhang Yiming.
-
China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
-
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.