World

US-China Trade Talks: What Soybean Farmers and TikTok Users Need to Know

China to buy more U.S. soybeans, delays rare earths licensing after trade talks. Deal expected next week.

October 26, 2025, 5:29 PM

Farmer examining rows of soybean plants in a field during daytime

A farmer wearing a red cap and brown t-shirt walks through a lush green soybean field, inspecting the crop. By Fotokostic / Shutterstock.com.

Executive Summary

China is expected to significantly increase purchases of U.S. soybeans for several years and postpone the expansion of its rare earths licensing regime by one year.

A trade deal between President Donald Trump and President Xi Jinping, anticipated next Thursday, will formalize these agreements.

The impending deal also includes the transfer of ownership of the Chinese short video application TikTok to U.S. control.

The Story So Far

The recent announcements stem from ongoing efforts to de-escalate economic tensions between the U.S. and China, which have been characterized by disputes over trade imbalances and technology transfer. Following two days of intensive trade talks between U.S. and Chinese officials, a comprehensive trade deal is anticipated next week between President Donald Trump and President Xi Jinping, aiming to resolve specific issues like soybean purchases, rare earths licensing, and TikTok ownership.

Why This Matters

The anticipated trade deal between President Donald Trump and President Xi is poised to significantly benefit U.S. agriculture through increased Chinese soybean purchases for several seasons and ease concerns over critical mineral supply chains by delaying China’s rare earths licensing expansion. Additionally, the finalization of TikTok’s ownership transfer to U.S. control addresses a key technology and national security issue, collectively signaling a potential de-escalation in several contentious areas of the U.S.-China economic relationship.

Who Thinks What?

U.S. Treasury Secretary Scott Bessent announced that China is expected to significantly increase purchases of U.S. soybeans for several years and will postpone the expansion of its rare earths licensing regime by one year, in addition to finalizing a deal for TikTok’s ownership transfer to U.S. control.

U.S. soybean farmers are expected to benefit significantly from the impending trade deal through revived Chinese purchases for the current and several coming seasons.

U.S. Treasury Secretary Scott Bessent announced on Sunday that China is expected to significantly increase purchases of U.S. soybeans for several years and will postpone the expansion of its rare earths licensing regime by one year, with a re-evaluation after that period. The announcement followed two days of trade talks between U.S. and Chinese officials in Kuala Lumpur, Malaysia, with Bessent indicating that a trade deal between President Donald Trump and President Xi Jinping is anticipated next Thursday.

Trade Deal Specifics

Bessent stated on CBS’s “Face the Nation” that the revived soybean purchases would be substantial. He further elaborated on ABC’s “This Week” that U.S. soybean farmers would benefit significantly from the impending deal, both for the current season and for several coming seasons.

In addition to agricultural trade, Bessent confirmed that details were finalized for a deal to transfer ownership of the Chinese short video application TikTok to U.S. control. He indicated that President Trump and President Xi would be able to “consummate” this transaction next week.

Context of Discussions

The discussions in Malaysia focused on key economic issues between the two global powers. These included trade imbalances and technology transfer, alongside specific commodities like soybeans and critical minerals such as rare earths. The outcomes suggest a framework for de-escalation in certain areas of the U.S.-China economic relationship.

Outlook

The anticipated agreements on soybean purchases, rare earths licensing, and TikTok ownership signal potential progress in U.S.-China trade relations. The formal announcement by President Trump and President Xi next week is expected to provide further clarity on the scope and implications of these developments.