Summary
The United States and China are moving closer to a trade agreement as President Donald Trump and Chinese leader Xi Jinping prepare for a meeting to discuss finalizing the deal. Officials from both countries have reached an initial understanding, which is seen as a positive step for global markets, though it doesn't resolve all underlying trade issues. The meeting will take place during President Trump's trip to Asia, with further talks planned for the future.
Key Facts
- The U.S. and China are nearing a trade deal, aiming for finalization during a meeting between President Trump and Xi Jinping.
- The pending agreement is expected to relieve international markets but won't tackle all trade issues.
- Recently, China limited exports of rare earth elements, and President Trump threatened additional tariffs in response.
- U.S. Treasury Secretary Scott Bessent confirmed a "successful framework" has been established and further tariff threats are off.
- Initial agreements include efforts to stop fentanyl chemicals from reaching the U.S. and China's promise to buy more U.S. agricultural products.
- Talks between the U.S. and China are part of the ASEAN Summit in Kuala Lumpur, Malaysia.
- President Trump also attended a ceasefire ceremony between Thailand and Cambodia at the summit.
- Trump plans to visit China, with possible future visits by Xi to Washington or Trump's Mar-a-Lago resort.
