#us-china-trade

#us-china-trade

U.S. stocks signaled another rally on Sunday night after the Trump administration negotiated a framework for a trade deal with China that should avoid mutual assured destruction. Treasury Secretary Scott Bessent offered rough outlines of an agreement that include China easing rare earth export restrictions and buying "significant" amounts of U.S. soybeans in exchange for President Donald Trump removing his threat of adding 100% tariffs on China.

If you don't support yourself, who will? That appeared to be President Donald Trump's motto on Sunday night, with the commander-in-chief posting a picture of himself to Truth Social that included an Instagram-like caption that sang his praises for working like a dog for no money in order to save a Country that doesn't appreciate his sacrifice! The picture was of Trump walking, looking a bit tired and glum, on the White House lawn.

Trump, ever the deal-maker, has been teasing that the meeting will be a breakthrough. (SOUNDBITE OF ARCHIVED RECORDING) PRESIDENT DONALD TRUMP: So I think we're going to end up having a fantastic deal with China. It's going to be a great trade deal. It's going to be fantastic for both countries, and it's going to be fantastic for the entire world.

Trump told reporters aboard Air Force One that he hoped for a very good meeting with Xi, adding that he expected China to make a deal to avoid more 100% tariffs taking effect on 1 November. As he left Washington, Trump added fuel to the speculation that while on the Korean peninsula he could meet Kim Jong-un for the first time since 2019. I would. If you want to put out the word, I'm open to it, Trump said aboard the presidential plane.

The probe comes as the US government seeks additional leverage against Beijing amid escalating trade tensions. The United States has launched an investigation into whether China is out of compliance with a 2020 trade deal they struck together, as trade tensions ratchet up between the world's two largest economies. US Trade Representative Jamieson Greer announced the investigation on Friday, as President Donald Trump travels to Asia to meet with his Chinese counterpart, Xi Jinping.

Donald Trump is about to embark on a tour of Asia that many hope will ease trade tensions with countries in the region and repair damaged ties with China. Trump will begin his trip on Sunday at a meeting of south-east Asian nations in Malaysia, before flying to Japan to meet its new prime minister, Sanae Takaichi, early next week. But the most important stop on his itinerary will come at the end of the month,

When you are facing a nonmarket economy like China, then you have to exercise industrial policy, Bessent said. The Treasury Secretary explained that China has put rare earth mineral companies out of business by massively dropping their own prices. We're going to set price floors and the forward buying to make sure that this doesn't happen again, and we're going to do it across a range of industries, he said.