### US and China Move Closer to Trade Agreement Ahead of High-Stakes Meeting In a significant development, U.S. and Chinese officials have reached a preliminary agreement on a trade deal framework just days before Presidents Donald Trump and Xi Jinping are set to meet in South Korea. This agreement is seen as a crucial step towards easing ongoing trade tensions between the two largest economies in the world. U.S. Treasury Secretary Scott Bessent has indicated that the framework includes key elements such as a resolution regarding TikTok's operations in the U.S. and a potential extension of the current tariff truce, which has been a point of contention in previous negotiations. The discussions took place during two days of talks in Malaysia, where both sides expressed optimism about the upcoming meeting and the potential for a finalized deal [https://finance.yahoo.com/video/us-china-agree-substantial-framework-194759871.html, https://www.theguardian.com/us-news/2025/oct/27/us-china-framework-trade-deal-xi-trump-meeting]. ### Breakdown of the Trade Deal Framework and Meeting Structure 1. **Framework Agreement**: - U.S. and China have agreed on a substantial framework for a trade deal, which will be discussed in detail during the upcoming meeting between Trump and Xi [https://justthenews.com/government/diplomacy/us-china-have-reached-substantial-framework-trade-talks-bessent-says]. 2. **Key Components**: - The framework reportedly includes a final deal on TikTok's U.S. operations and a deferral on China's rare-earths regulations [http://island.lk/us-and-china-agree-framework-of-trade-deal-ahead-of-trump-xi-meeting]. - An anticipated extension of the tariff truce, which could prevent the imposition of new tariffs on Chinese goods [https://www.nbcnews.com/politics/donald-trump/us-china-trade-deal-avoid-100-tariffs-scott-bessent-rcna239822]. 3. **Optimism from Officials**: - Both U.S. and Chinese officials have expressed confidence in the framework, with Bessent describing it as "very successful" and indicating that the threat of 100% tariffs on Chinese goods is effectively off the table [https://fortune.com/2025/10/26/did-us-and-china-reach-trade-deal-trump-xi-bessent]. ### Supporting Evidence and Data - **Negotiation Outcomes**: - The agreement follows two days of negotiations in Malaysia, where a preliminary consensus was reached [https://www.businesstimes.com.sg/international/global/trump-confident-deal-after-successful-us-china-talks-malaysia]. - Key topics discussed included extending the truce on trade measures and addressing issues related to fentanyl and exports [https://www.businesstimes.com.sg/international/global/chinas-top-trade-negotiator-li-says-reached-consensus-us-after-kl-trade-talks]. - **Market Reactions**: - The potential for a trade deal has led to increased optimism in financial markets, with analysts predicting a positive impact on U.S. agricultural exports, particularly soybeans, as China is expected to resume substantial purchases [https://www.theguardian.com/us-news/2025/oct/27/us-china-framework-trade-deal-xi-trump-meeting]. ### Conclusion: A Step Towards Trade Resolution In summary, the U.S. and China have made significant strides towards a trade agreement, with a framework now in place for discussion at the upcoming Trump-Xi meeting. 1. **Framework Established**: A substantial framework for a trade deal has been agreed upon, addressing key issues such as TikTok and tariffs. 2. **Positive Outlook**: Both sides are optimistic about the potential for a finalized agreement, which could ease trade tensions and benefit both economies. 3. **Market Implications**: The anticipated deal is expected to have positive implications for U.S. exports, particularly in agriculture. This development marks a pivotal moment in U.S.-China relations, with the potential to reshape the economic landscape between the two nations [https://www.turkiyetoday.com/business/us-china-agree-on-preliminary-trade-deal-in-malaysia-officials-say-3209011].