US China Reach Tentative Trade Truce Ahead Trump Xi Meeting

The United States and China are nearing a fragile truce to prevent escalation in their ongoing trade dispute ahead of a crucial meeting between President Donald Trump and Chinese President Xi Jinping at the APEC Summit. Key points include China's agreement to resume U.S. soybean purchases and a one-year delay on rare-earth export controls, while the U.S. is set to retract its threatened 100% tariffs on Chinese goods. Treasury Secretary Scott Bessent confirmed these developments and also noted a final deal on TikTok's U.S. operations, expected to be sold to a consortium of American investors. Analysts highlight this deal as a temporary reprieve, allowing both countries to reconfigure supply chains and reduce vulnerabilities, though underlying tensions remain unresolved. The truce is seen as a strategic pause, coinciding with U.S. political timelines and allowing the Trump administration to bolster policies on critical minerals and rare earths with other nations to reduce dependence on China. Despite diplomatic successes, fundamental issues like advanced technology export controls and broader trade conflicts persist, leaving the long-term resolution uncertain.