Trump, Xi to review trade framework after ASEAN talks
U.S.-China talks in Kuala Lumpur set a trade framework ahead of the Trump-Xi summit that could extend the tariff truce, delay rare-earth curbs and pause 100% tariffs.
The United States and China reached a preliminary trade framework in Kuala Lumpur after two days of talks. The plan sets up decisions for Presidents Donald Trump and Xi Jinping on extending a tariff truce past Nov. 10 and on deferring China’s expanded rare‑earth export controls.
U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met Chinese Vice Premier He Lifeng and trade envoy Li Chenggang on the sidelines of the ASEAN summit. According to officials, the framework spans export controls, fentanyl, shipping levies, agricultural trade and issues around TikTok. Both delegations will brief their leaders before a planned summit on Thursday.
Bessent described the outcome as "very positive" and indicated he expects Beijing to delay rare‑earth restrictions for about a year while it reviews them. He also noted the United States is not preparing changes to its export controls on China. He added that the U.S. threat to impose 100% tariffs would be paused if a deal is finalized.
Greer indicated that avoiding new disruptions to rare‑earth shipments remains a central objective and that negotiations are progressing on that front. The framework also includes steps to resolve a dispute over U.S. port fees on Chinese vessels and China’s retaliatory charges on U.S.-linked ships.
Li pointed to consensus on addressing the flow of fentanyl precursors. He also noted that adjustments to a 20% U.S. tariff tied to fentanyl concerns are under discussion.
Talks covered restoring Chinese purchases of U.S. soybeans and other farm goods after earlier retaliatory tariffs reduced shipments. Trump told reporters he expects "a good deal with China" and flagged potential follow-up meetings in both countries. Li characterized the discussions as "intense" with a "preliminary consensus" reached.
The tariff truce, first struck in May and extended in August, rolled back many triple‑digit duties imposed earlier this year and is set to expire on Nov. 10. Friction increased in recent weeks after China broadened curbs on rare‑earth magnets and minerals and the United States weighed higher tariffs and other actions. Trump and Xi are expected to meet on Thursday; Beijing has not publicly confirmed the session.
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