Kuala Lumpur, Malaysia - U.S. Treasury Secretary Scott Bessent announced Sunday that the United States and China have reached a "very substantial framework" on trade, averting the immediate threat of escalating tariffs and paving the way for further negotiations. The announcement follows high-level talks held in Kuala Lumpur, Malaysia, ahead of a scheduled meeting between President Donald Trump and Chinese President Xi Jinping next week.
Secretary Bessent, in an interview on NBC's "Meet the Press," stated that the framework would prevent the U.S. from imposing 100% tariffs on Chinese goods, which were expected to take effect November 1. He also anticipated a deferral of China's rare earth export controls, a major point of contention between the two nations. These controls, if implemented, could have severely impacted the U.S. economy, as rare earth minerals are essential components in most electronics. Bessent suggested in an interview with ABC News that China would defer the restrictions for about a year.
The trade framework aims to address several key issues, including more balanced trade between the U.S. and China, increased Chinese purchases of American soybeans and other agricultural products, and measures to combat the U.S. fentanyl crisis. China has stopped buying soybeans from the United States this autumn. Secretary Bessent told CBS News that the additional 100 percent tariff that the US was supposed to implement from November 1 on Chinese goods “is effectively off the table”.
U.S. Trade Representative Jamieson Greer echoed this sentiment, stating that the two sides had discussed another extension in a series of truces on tariffs they have engaged in this year. Speaking to reporters in Kuala Lumpur, he said, “We are moving forward to the final details of the type of agreement that the leaders can review and decide if they want to conclude together”.
Chinese state news agency Xinhua reported that the U.S. and China envoys came to a “basic consensus” after negotiating on a wide range of issues including tariffs, export controls, fentanyl and agricultural trade. China's top trade negotiator, Li Chenggang, described the talks as "candid and in-depth discussions," adding that the two sides had reached a "preliminary consensus".
President Trump, who was also in Kuala Lumpur for the Association of Southeast Asian Nations (ASEAN) summit, expressed optimism about the trade discussions. "They want to make a deal, and we want to make a deal," Trump told reporters, adding that he expected additional leader-level follow-up meetings in China and the U.S..
While the "substantial framework" represents a significant step forward, final terms are expected to be decided by Presidents Trump and Xi. Bessent portrayed the progress cautiously, emphasizing that further details must still be finalized and approved domestically.
