Lead:
The United States and China have agreed a framework for a trade deal ahead of a planned meeting between Donald Trump and Chinese President Xi Jinping, according to a BBC report. A US trade secretary said the two sides will sign a deal concerning TikTok and also hinted at understandings on rare earths and tariffs. The announcement signals a potential shift in a relationship that has shaped global markets and supply chains since the start of the trade war in 2018. It also places two of the world’s largest economies on a path that could ease tensions around technology, critical minerals and goods flows, while leaving key details to formal talks between leaders.
Context and timing
The development emerged on Monday, 27 October 2025, ahead of the planned Trump–Xi meeting. The BBC reported the comments and outlined the areas that sit inside the framework. Officials did not publish the full text of the framework at the time of reporting. The timing matters because it sets expectations before a high-profile leader-level engagement, when both governments often seek concrete deliverables.
TikTok deal signals push to resolve data and ownership tensions
A US trade secretary said Washington and Beijing will sign a deal on TikTok as part of the new framework. The statement indicates both sides want to settle a dispute that has spanned data security, ownership, and national security claims. The BBC report did not set out the terms, and officials have not released specifics. Any formal signing would mark a notable step in one of the most visible flashpoints in US–China tech relations.
TikTok sits at the centre of this debate because the app, owned by ByteDance, hosts a large US audience. The company said in 2023 that more than 150 million people in the United States use the platform. In 2024, the US enacted a law that required ByteDance to divest TikTok within set deadlines or face a nationwide ban. TikTok and ByteDance challenged that measure in court. A fresh agreement could aim to address US data security concerns while setting clear guardrails for operations, but officials have not described the scope of the deal.
Rare earths: supply chain security and market stability
The US trade secretary also hinted at an understanding on rare earths, a cluster of metals vital for magnets, wind turbines, electric vehicles, and defence systems. China refines the majority of the world’s rare earths, with widely cited estimates often above 80% of global processing. That concentration gives Beijing significant influence over prices and availability. Any framework that touches rare earths would matter for manufacturers, miners, and investors across several continents.
Both countries have moved to secure supplies and reduce vulnerabilities. The United States and partners have funded new mining and processing projects outside China. Beijing has used export licensing in related sectors before, including controls on gallium and germanium in 2023, and tighter rules for graphite exports that same year. If Washington and Beijing now set clearer terms for rare earths trade, the move could stabilise pricing and delivery timelines for critical industries. The BBC report did not provide details on quotas, licensing, or verification, so market participants will watch for specific measures.
Tariffs: from years of escalation to possible recalibration
The framework also appears to touch on tariffs. Since 2018, the United States has imposed Section 301 tariffs on hundreds of billions of dollars of Chinese goods. China responded with its own duties. Those measures reshaped supply chains, raised costs for some importers, and spurred firms to diversify production into Southeast Asia, India, and Mexico. Despite shifts over time, the core tariffs remained in place through successive administrations.
In 2024, the United States raised duties on certain strategic imports, including electric vehicles, semiconductors, solar cells and related inputs. China and the United States both continued to cite national security and industrial resilience as reasons for their trade stance. The US trade secretary’s hint at a tariff-related understanding suggests a potential path to selective easing, targeted exclusions, or clearer timelines. However, the BBC report did not outline cuts or schedules, and neither side has released a public tariff roadmap.
High-stakes meeting: leaders aim for guardrails and deliverables
The framework arrives ahead of a meeting between Donald Trump and President Xi. Past encounters between the two men during Mr Trump’s earlier time in office included sessions at Mar-a-Lago in 2017, the G20 in Buenos Aires in 2018, and the G20 in Osaka in 2019. Those meetings produced pauses, new talks, and at times sharper rhetoric. The latest engagement carries high stakes because it follows years of tension over trade, technology, and security.
Leader-level meetings often serve two goals: they set broad guardrails to manage competition, and they deliver concrete wins that officials can implement quickly. A TikTok signing would offer a visible result. Steps on rare earths and tariffs would reach deeper into global value chains and corporate plans. Investors, manufacturers, and tech firms will track whether the leaders endorse the framework and instruct teams to translate it into binding text.
Tech, data, and the path to compliance
Technology sits at the heart of the US–China relationship. Washington has imposed export controls on advanced chips and chipmaking tools to limit military and surveillance uses. Beijing has sought to boost local alternatives and protect its own supply chains. TikTok, while a consumer platform, links into these broader themes because it raises questions about data flows, governance, and cross-border control.
If the TikTok deal moves forward, companies will need clear compliance steps. These could include stronger audits, data localisation standards, and independent oversight. In 2020 and 2021, firms explored structures such as third-party data trustees and security reviews. In 2024, lawmakers pushed for outright ownership separation within defined timelines. Market participants will assess whether the new agreement relies on technical safeguards, corporate restructuring, or a blend of both. The BBC report did not specify the mechanism.
Industry and market reaction: cautious optimism, demand for detail
Businesses that rely on predictable trade rules may welcome signs of progress. Manufacturers that use rare earth magnets, EV
