Kuala Lumpur: US Treasury Secretary Scott Bessent announced that Washington and Beijing have agreed on a preliminary trade framework, which involves China delaying export restrictions on rare earths and increasing its purchase of US soybeans. This development, if confirmed, would prevent a potential 100 percent increase in tariffs on Chinese exports to the US. Bessent expressed optimism that China would reinstate substantial purchases of US soybeans for several years and postpone its stringent licensing requirements for rare earths by a year.
According to United Nations, these remarks came after two days of intensive trade discussions between US and Chinese officials in Malaysia. Bessent, appearing on CBS’s “Face the Nation,” emphasized the significance of the soybean purchases, while on ABC’s “This Week,” he mentioned that the anticipated trade deal announcement by President Donald Trump and President Xi Jinping next Thursday would be well-received by US soybean farmers. Bessent also noted on NBC’s “Meet the Press” that the agreement could prevent a new 100 percent US tariff on Chinese goods, which President Trump had previously threatened.
The talks also covered broader issues, including agricultural purchases, balanced trade, and the US fentanyl crisis, which had prompted a 20 percent tariff on Chinese goods. Chinese representative Li confirmed that both sides had reached a “preliminary consensus” and will now proceed with their respective internal approval processes. Li highlighted the tough US stance and the constructive exchanges in finding solutions to mutual concerns.
President Trump’s visit to Malaysia for the ASEAN summit marks the beginning of a five-day Asia tour, culminating in a meeting with Xi in South Korea on October 30. Trump expressed optimism about reaching a deal with China after the talks.
Both nations aim to de-escalate the ongoing trade tensions, with Trump threatening new tariffs and trade restrictions set to begin on November 1, in response to China’s expanded export controls on rare earths. The existing trade truce, which had led to the rollback of most tariffs, is set to expire on November 10.
US and Chinese officials also discussed other topics, including fentanyl, port entrance fees, and TikTok. Li described the talks as “candid,” while Bessent termed them “very substantial negotiations.” The possibility of extending the trade truce remains open, awaiting presidential approval.
Although the White House has officially announced the Trump-Xi talks, Beijing has yet to confirm the meeting. On the sidelines of the ASEAN Summit, Trump hinted at potential meetings with Xi in China and the US. Key discussion points include Chinese purchases of US soybeans, Taiwan, and the release of Hong Kong media tycoon Jimmy Lai.
US-China relations have been strained due to persistent trade issues despite previous truces. Recent talks likely focused on China’s expanded rare earths export controls, which have created global shortages. This has led the Trump administration to consider restricting software-powered exports to China.