KUALA LUMPUR, Malaysia , 27 October (H.S.): The United States and China reached a significant breakthrough on Sunday, agreeing to a framework for a trade deal that averts massive new U.S. tariffs and finalizes an agreement on the future of TikTok’s U.S. operations.

The announcement, made by U.S. Treasury Secretary Scott Bessent from Kuala Lumpur, sets the stage for a high-stakes meeting between President Donald Trump and Chinese President Xi Jinping in South Korea on Thursday .Bessent confirmed that under the new framework, President Trump’s threatened 100% tariffs on Chinese goods, which were set to take effect in November, will not be implemented.

In return, China has agreed to several key concessions. Beijing will delay for one year its tightened controls on the export of rare earth minerals, materials essential for many electronics and a key point of leverage for China .

Additionally, China will resume substantial purchases of U.S. soybeans, providing significant relief for American farmers hurt by the protracted trade war.The framework was established following constructive discussions between Bessent and senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia.

Bessent stated that the two sides had reached a substantial framework for the two leaders, which he believes will lead to a very productive meeting. The development marks a major de-escalation in the trade war between the world’s two largest economies.The agreement also includes what Bessent described as a final deal on TikTok, which the two leaders are expected to formally consummate on Thursday.

This resolves a long-standing issue for the U.S., which has cited national security concerns over the popular video-sharing app’s Chinese parent company, ByteDance . The White House had previously pushed for a sale of TikTok’s U.S. operations and delayed a potential ban several times to allow for negotiations.

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Hindusthan Samachar / Jun Sarkar