Top U.S. and Chinese economic officials reached a preliminary framework for a trade deal that could halt Washington’s planned 100% tariffs on Chinese imports and delay Beijing’s new export controls on rare earth materials, according to American officials on Sunday.
U.S. Treasury Secretary Scott Bessent said that negotiations held on the sidelines of the ASEAN Summit in Kuala Lumpur helped ease immediate trade threats, including President Donald Trump’s proposed tariffs set to take effect on November 1. He added that China is expected to postpone its rare earth licensing policy for at least a year while it undergoes review.
The tentative agreement is set for final approval when President Trump and Chinese President Xi Jinping meet Thursday at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea. While the White House has confirmed the meeting, Beijing has yet to issue an official statement.
“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters after his talks with Chinese Vice Premier He Lifeng and top negotiator Li Chenggang. The officials have met five times since May in efforts to stabilize economic relations between the two countries.
Bessent also signaled that the current tariff truce will likely extend beyond its November 10 expiration date and that China plans to resume large-scale purchases of American soybeans. “U.S. soybean farmers will feel very good about what’s going on both for this season and the coming seasons for several years,” he said on ABC’s This Week.
U.S. Trade Representative Jamieson Greer said on Fox News Sunday that the talks achieved progress in pausing punitive actions and improving access to Chinese rare earth materials. “We can try to balance out our trade deficit with sales from the United States,” he said.
Chinese officials confirmed that both sides reached a “preliminary consensus” but noted that internal reviews are still underway. “The U.S. position has been tough, whereas China has been firm in defending its own interests and rights,” Li Chenggang said.
Trump, who arrived in Malaysia on Sunday for the ASEAN summit, expressed optimism about the upcoming meeting. “I think we’re going to have a deal with China,” he told reporters.
The possible breakthrough comes after weeks of escalating tensions. Trump had threatened sweeping tariffs in retaliation for China’s expanded export controls on rare earth magnets and minerals. Beijing currently dominates more than 90% of global supply of these critical materials, which are used in electric vehicles, semiconductors, and defense technology.
The two countries have been operating under a fragile trade truce since May, when both sides agreed to reduce certain tariffs. However, new sanctions and export restrictions in recent weeks have reignited economic friction.
In addition to trade issues, U.S. and Chinese negotiators discussed cooperation on curbing the U.S. fentanyl crisis, reviewing port entry fees, and finalizing a plan for the transfer of TikTok to U.S. ownership. Bessent told NBC’s Meet the Press that both countries are “working to iron out the details” before Trump and Xi “consummate the transaction” in South Korea.
Trump also hinted at future meetings with Xi in both China and the United States. “We’ve agreed to meet. We’re going to meet them later in China, and we’re going to meet in the U.S., in either Washington or at Mar-a-Lago,” he said.
Among Trump’s agenda items for Thursday’s meeting are expanding U.S. agricultural exports, addressing tensions over Taiwan, and pushing for the release of jailed Hong Kong media tycoon Jimmy Lai, a prominent figure in the city’s pro-democracy movement.
Trump is also expected to seek China’s cooperation in managing relations with Russia as the war in Ukraine continues.
As both nations work to finalize a deal, the outcome of this week’s Trump-Xi meeting could determine whether the world’s two largest economies stabilize their trade relationship—or reignite another round of economic confrontation.
Related Readings:
