Top economic officials from the U.S. and China met on Sunday to discuss a potential trade deal that could ease tensions between the two countries. The talks took place during the ASEAN Summit in Kuala Lumpur and set the stage for a crucial meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week.
U.S. Treasury Secretary Scott Bessent reported that the discussions helped eliminate the threat of new 100% tariffs on Chinese imports that were set to start on November 1. He also mentioned that China is likely to postpone its new licensing requirements for rare earth minerals by a year while they revisit the policy.
While U.S. officials expressed optimism about the talks, Chinese representatives were more reserved, providing few details on the outcomes. Trump and Xi are scheduled to meet on Thursday during the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea. Although the White House confirmed the meeting, China has not yet officially acknowledged it.
Bessent emphasized that the framework established during the recent discussions would give the leaders a solid basis to work from. He expects that a temporary truce on tariffs will be extended beyond its current expiration date of November 10. Additionally, he anticipates that China will resume significant purchases of U.S. soybeans, which had dropped to zero in September as China favored imports from Brazil and Argentina.
U.S. Trade Representative Jamieson Greer noted that both countries found common ground, allowing for better access to Chinese rare earths and working towards reducing the trade deficit. China’s trade negotiator, Li Chenggang, described the discussions as constructive, highlighting the intense negotiations aimed at addressing mutual concerns.
During the talks, the officials also addressed various issues, including the U.S. fentanyl crisis, port fees, and the potential transfer of TikTok to U.S. ownership. Bessent indicated that details regarding the TikTok deal still need to be finalized to ensure a smooth agreement between Trump and Xi.
After the meetings, Trump expressed confidence, stating, “I think we’re going to have a deal with China.” This comes after he threatened new tariffs in response to China’s increased export controls on rare earth materials, which are vital for high-tech industries.
The ongoing tensions between the U.S. and China have escalated in recent weeks, complicating efforts to maintain a fragile trade truce. China’s stricter controls on rare earth exports have led to global shortages, prompting the U.S. to consider restrictions on a range of technology exports to China.
As Trump continues his five-day tour of Asia, he hinted at future meetings with Xi in both China and the U.S. He plans to discuss several important topics with Xi, including Chinese soybean purchases, Taiwan, and the situation of jailed Hong Kong media tycoon Jimmy Lai. Additionally, Trump is looking for China’s assistance regarding U.S. relations with Russia amid ongoing conflicts.
The outcome of the upcoming meeting between Trump and Xi could have significant implications for the global economy and international relations.
