On Sunday, US Treasury Secretary Scott Bessent hinted at a potential agreement with China aimed at reducing the strain of their ongoing trade conflict fueled by tariffs. This announcement comes just days ahead of a summit planned between President Donald Trump and President Xi Jinping.
In an interview with ABC”s “This Week,” Bessent indicated that the US had removed the threat of a drastic 100 percent tariff increase on Chinese imports. In exchange, China has agreed to postpone restrictions on its global rare earth exports. “The tariffs will be averted,” Bessent stated after discussions with Chinese Vice Premier He Lifeng in Kuala Lumpur, Malaysia.
Bessent elaborated that China would delay its export controls for a year while reassessing the situation. His comments occurred as Trump commenced a tour of Asia, culminating in a meeting with Xi in South Korea, where Bessent anticipates that both leaders will formally announce the agreement.
The Treasury Secretary also mentioned that China has committed to making “substantial” purchases from American farmers, who have been significantly affected by the trade dispute. These farmers, previously major suppliers of soybeans to China, experienced a complete halt in orders amid the tensions. Bessent expressed optimism, stating, “I believe, when the announcement of the deal with China is made public, that our soybean farmers will feel very good.”
Additionally, the discussions in Kuala Lumpur included a resolution regarding the US operations of TikTok, the popular social media platform owned by Chinese company ByteDance, which has around 170 million users in the US. Citing concerns over national security, the US has been working to transfer control of TikTok”s American operations to a group of US investors. Last month, Trump signed an executive order aimed at facilitating this transition. Bessent noted, “All the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.”
The negotiations also addressed issues related to the fentanyl trade, with the US accusing China of neglecting to tackle trafficking of this potent opioid, a claim that China denies. “We agreed that the Chinese would begin to help us, with the precursor chemicals for this terrible fentanyl epidemic that”s ravaging our country,” Bessent remarked.
