US China Trade Deal
Top economic officials from the US China held fresh talks on Sunday during the ASEAN Summit in Kuala Lumpur. The discussions, which stretched over several hours, focused on a trade framework that both President Donald Trump and President Xi Jinping will review later this week.
The plan, if approved, would pause the scheduled increase in U.S. tariffs and delay China’s rare earth export restrictions and ease US China Trade, which had raised global concern because rare earth minerals remain essential in electronics, defense, and renewable technology industries.
Tariff Pause Nears Agreement
U.S. Treasury Secretary Scott Bessent stated that the negotiations helped remove the immediate threat of Trump’s 100% tariffs set for November 1.
Additionally, he said China is likely to postpone its new rare earth licensing policy by at least one year.
“We have a workable framework for the leaders to review,” Bessent said after the meeting.
Meanwhile, Chinese representatives chose more cautious language. Although they confirmed progress, they avoided detailing any terms before internal consultations conclude.
Leaders Set to Meet at APEC Summit
The two presidents are expected to meet Thursday at the APEC Summit in Gyeongju, South Korea. The White House confirmed the meeting plans. However, China has not yet officially announced Xi’s attendance.
If both leaders approve the framework, the temporary trade truce expiring on November 10 could be extended. Moreover, China is expected to restart large-scale purchases of U.S. soybeans, a key demand of American agricultural states.
Soybean Trade
Bessent indicated that soybean shipments will likely increase again, something U.S. farmers have been waiting months to hear.
“Farmers will feel good not just this year, but for years ahead,” he stated.
Furthermore, both sides reportedly agreed to ease certain trade penalties and explore ways to balance imports and exports between the two countries.
Cautious Optimism from China
Chinese negotiator Li Chenggang confirmed that the sides reached a “preliminary consensus.”
He described the negotiations as intense, adding that both countries tried to address each other’s concerns with constructive approaches.
Other Issues
The talks also included:
- Fentanyl and illegal drug trafficking concerns
- Port access and shipping fees
- The pending TikTok U.S. ownership transfer
- Regional security issues involving Taiwan
- The detention of Hong Kong media figure Jimmy Lai
- U.S.–China coordination regarding Russia’s war in Ukraine
Trump hinted that additional follow-up meetings might take place in both US-China in the coming months.
Fragile Truce Still at Risk
Although progress has been made, the situation remains delicate.
Recent weeks saw renewed sanctions, tech export restrictions, and public warnings from both sides. Meanwhile, China’s tightened control over rare earth exports has already affected global supply chains. This has prompted U.S. officials to consider countermeasures on technology-related products.
However, this latest round of talks suggests that both US China want to prevent escalation, at least for now.