In a significant development ahead of the scheduled Trump-Xi meeting, the U.S. and China have successfully reached a framework agreement on trade. This deal, which Treasury Secretary Scott Bessent indicates may avert a potential crisis triggered by escalating tariff threats, includes provisions for substantial purchases of U.S. soybeans by China and a pause on proposed tariffs. Both nations have expressed confidence in the progress made, despite acknowledging that fundamental issues remain unresolved. The agreement signals a conciliatory tone from China and sets the stage for further discussions aimed at finalizing the deal and addressing critical concerns such as rare earth exports and trade imbalances. As the upcoming meeting approaches, markets are reacting positively to the prospect of reduced tensions between the two largest economies.