Top Chinese and US economic officials have agreed on a framework for a trade agreement, as US President Donald Trump expressed confidence in hashing out a deal with Chinese President Xi Jinping.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang on the sidelines of the ASEAN summit in Kuala Lumpur for a fifth round of in-person discussions since May.
The agreement is expected to defer China’s expanded export controls on rare earth minerals and magnets and avoid a new 100% U.S. tariff on Chinese goods threatened by Trump. The talks will also discuss soybean and agricultural purchases from American farmers, more balanced trade, and resolving the U.S. fentanyl crisis, which was the basis of 20% U.S. tariffs on Chinese goods.
Both sides are looking to avert an escalation of their trade war after Trump threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China’s expanded export controls on rare earth magnets and minerals.
The U.S. and Chinese officials discussed trade expansion, an extension of the truce, fentanyl, U.S. port entrance fees, rare earths, TikTok, and more. While the White House has officially announced the highly anticipated Trump-Xi talks, Beijing has yet to confirm that the two leaders will meet.
With information from Reuters
