Senior U.S. and Chinese economic officials have sketched out the framework of a new trade arrangement that would pause steep American tariffs and delay China’s planned export controls on rare earth minerals, setting the stage for U.S. President Donald Trump and Chinese President Xi Jinping to decide on the deal later this week.
U.S. Treasury Secretary Scott Bessent said the talks, held on the sidelines of the ASEAN Summit in Kuala Lumpur, had “eliminated the threat” of Trump’s proposed 100% tariffs on Chinese imports scheduled to begin on November 1.
He added that China is expected to postpone by a year the implementation of its licensing regime on rare earth minerals and magnets, a move that had alarmed global manufacturers.
“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters, referring to the upcoming Trump–Xi meeting at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea.
Chinese Vice Premier He Lifeng and top negotiator Li Chenggang led Beijing’s delegation in what was the fifth round of in-person negotiations since May.
Li described the outcome as a “preliminary consensus,” saying both sides would now conduct internal reviews before leaders meet. “The U.S. position has been tough, whereas China has been firm in defending its own interests and rights,” Li said.
U.S. Trade Representative Jamieson Greer confirmed that the two sides agreed to suspend some punitive trade actions and “found a path forward where we can have more access to rare earths from China” while boosting U.S. exports to reduce the trade deficit.
The framework also addresses U.S. soybean exports, fentanyl trafficking, port fees, and the transfer of the social media app TikTok to U.S. ownership. Bessent told NBC’s Meet the Press that technical details of the TikTok agreement are being finalized so Trump and Xi can “consummate the transaction” during their meeting in South Korea.
Trump, who arrived in Malaysia on Sunday for the ASEAN Summit as part of a five-day Asia tour, struck an optimistic tone after the talks. “I think we’re going to have a deal with China,” he told reporters.
The emerging agreement would extend the current tariff truce beyond its November 10 expiry date.
It also comes as China’s export controls on rare earths, materials vital for electric vehicles, semiconductors, and defense systems, have caused global supply shortages and driven U.S. consideration of further technology export restrictions to Beijing.
For American farmers, the prospect of renewed Chinese purchases is a major relief. “U.S. soybean farmers will feel very good about what’s going on both for this season and for the coming seasons,” Bessent said in an interview with ABC’s This Week.
Trump is also expected to raise broader geopolitical issues with Xi, including Taiwan, the detention of Hong Kong media tycoon Jimmy Lai, and coordination on dealing with Russia’s war in Ukraine. He hinted at future bilateral meetings in China and the United States, possibly at the White House or his Mar-a-Lago estate.
While Washington has confirmed the Thursday summit, Beijing has yet to officially announce Xi’s participation.
Analysts say that if finalized, the deal could stabilize trade relations between the world’s two largest economies, at least temporarily, after months of escalating tariffs and strategic tensions.
Source: Reuters
Written By Rodney Mbua
