The United States and China signaled Sunday that a long-anticipated trade deal is moving closer to completion, with both sides reaching an initial consensus ahead of a high-stakes meeting between President Donald Trump and Chinese President Xi Jinping later this week.
The announcement comes amid global economic uncertainty following Beijing’s decision to limit rare earth exports — critical components for advanced technologies — and Trump’s threat to impose new tariffs on Chinese imports. Economists say the escalating tensions have posed a significant risk to global growth.
China’s top trade negotiator, Li Chenggang, said the two nations had achieved a “preliminary consensus,” while US Treasury Secretary Scott Bessent described discussions as having produced “a very successful framework.”
Trump expressed optimism that an agreement was within reach, saying both countries were motivated to conclude talks.
“They want to make a deal and we want to make a deal,” he said.
The two leaders are expected to meet Thursday in South Korea, the final stop of Trump’s Asia tour, where the framework could be finalized.
Even if the agreement doesn’t resolve deeper disputes over manufacturing imbalances or access to advanced computer chips, analysts say it could still bring much-needed relief to global markets.
