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Singapore: US President Donald Trump is optimistic that he will strike a deal with Chinese President Xi Jinping when they are expected to meet in South Korea this week, as both countries’ trade negotiators agreed to a framework to be signed off by the leaders.
US and Chinese officials emerged from two days of trade talks on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia on Sunday talking up “constructive” discussions on key sources of tension, but did not reveal the full details of what had been agreed.
The Chinese side said the talks canvassed tariffs, fentanyl trafficking cooperation, agricultural trade, and export controls, while the US side added that it had sought a rollback on China’s recent expansion of rare earth export restrictions.
President Donald Trump speaks during a signing ceremony on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia.Credit: AP
US Treasury Secretary Scott Bessent told NBC’s Meet the Press that a “very substantial framework” had been reached with Chinese Vice Premier He Lifeng.
He indicated the US expected to see China defer its latest sweeping rare earths export controls, which had threatened to derail global high-tech manufacturing. In exchange, the US would not proceed with imposing an extra 100 per cent tariff on Chinese goods from November 1, as threatened by Trump.
Trump speaks after presiding over the signing of a Cambodia-Thailand peace deal.Credit: Getty Images
“I believe that we have the framework for the two leaders to have a very productive meeting for both sides, and I think it will be fantastic for US citizens, for US farmers, and for our country in general,” Bessent said.
He also hinted at a potential deal for China to resume buying American soybeans after a months-long hiatus, which has taken a heavy financial toll on US farmers.
“Soybean farmers are going to be extremely happy with this deal,” he told CBS program Face the Nation.
The talks in Kuala Lumpur were designed to de-escalate tensions after both sides engaged in a new round of tit-for-tat trade restrictions this month, smoothing the passage for Trump and Xi to conclude some kind of deal when they meet on Thursday for the first time during the US president’s second term.
Speaking after the talks, Chinese Trade Representative Li Chenggang said the “US position has been tough” but both sides had reached a “preliminary consensus”.
“We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns.”
As the trade negotiations wound up on Sunday, Trump told reporters in Malaysia: “I think we’re going to have a deal with China”.
Trump used his first stop on his five-day tour of Asia to ink trade and critical minerals pacts with Cambodia, Thailand and Malaysia ahead of his meeting with Xi on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea.
After initially hitting Southeast Asia with some of the highest tariffs in his global trade war, triggering concerns from allied partners that it would push the region towards China, Trump offered a message of support.
“My message to the nations of Southeast Asia is that the United States is with you 100 per cent and we intend to be a strong partner and friend for many generations to come,” Trump said in an address to the summit.
Trump’s five-day tour of Asia will see him depart Malaysia for Japan on Monday to meet with new Prime Minister Sanae Takaichi, before proceeding on to South Korea to meet with President Lee Jae Myung, and then Xi.
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