US, China trade talks progress ahead of Trump-Xi APEC meeting; tariffs, rare earths, TikTok in focus

The United States and China seem to be very close to a trade-deal ‘framework’ ahead of the highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping scheduled for Thursday, October 30, their first since 2019.

The two leaders are expected to meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, to discuss and sign off on the terms. While the White House has confirmed the Trump-Xi talks, China has yet to announce it officially.

On the sidelines of the ASEAN Summit in Kuala Lumpur, US Treasury Secretary Scott Bessent said that the US isn’t planning to impose Trump's 100% tariffs on Chinese imports (which were due to be implemented on November 1), adding that he expects China to delay the implementation of its rare earth minerals and magnets licensing regime.

"I think we have a very successful framework for the leaders to discuss on Thursday," Bessent told reporters, as per a Reuters report.

Negotiators and officials from both countries have reached a ‘basic consensus’ on core trade issues, as per reports.

Bessent said the two sides had a ‘very good’ two-day meeting, and the threat of a 100% tariff on Chinese goods is 100% eliminated, adding that the Chinese side has agreed to pause the restrictions on rare earth minerals.

Further, a deal on the restructuring of TikTok in the US is also expected to be formalised during the upcoming APEC summit. Bessent also mentioned that China could ease the boycott of US-grown soybeans.

The progress in the US-China deal is being seen as a major de-escalation from the unpredictable and tense trade standoff between the two sides.

US-China trade issues

The standoff between the two largest economies in the world has a significant impact on global trade flows, supply chains and geopolitics. A framework, or a trade deal, at this level can change global dynamics and ripple across international markets, including the Asia-Pacific.

The trade issues between the two in 2025:

These issues and the US-China relationship are important for global trade. All eyes will now be on the meeting on Thursday to see if the discussed framework will be turned into a deal and how the two sides will respond to key issues.

Indian markets

Markets have been responding positively, with advancing Asian equities on the back of softening trade troubles, along with a sharp rally in global markets.

In India, benchmark indices SENSEX and NIFTY skyrocketed on Monday. NIFTY reclaimed the 26,000 level, surging 0.81% to 26,104.2, while SENSEX was trading at above 84,880.

Gold and silver, which thrive when geopolitical tensions rise, fell sharply in the futures market on the Multi Commodity Exchange, dropping by up to 1.3% on Monday.