US and China Agree on Trade Framework Ahead of Leaders’ Meet

US President Donald Trump speaks during the Asean-US Summit in Kuala Lumpur, Malaysia, 26 October 2025.

Top economic officials from the United States and China have agreed on a framework for a trade deal ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer held talks with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang on the sidelines of the ASEAN summit in Kuala Lumpur. This marked the fifth round of in-person discussions since May.

“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent said, adding that the deal could defer China’s expanded export controls on rare earth minerals and avoid new 100% US tariffs on Chinese goods.

The discussions also covered US agricultural exports, particularly soybean purchases, efforts to balance trade, and tackling the US fentanyl crisis, which prompted earlier tariffs.

China’s Li described the talks as a “preliminary consensus” and said both sides would now proceed through internal approval processes. “The US position has been tough,” he added, noting the consultations were intensive but constructive.

Trump arrived in Malaysia as part of a five-day Asia tour, which is expected to culminate in a face-to-face meeting with Xi in South Korea on 30 October. He expressed optimism after the talks, saying: “I think we’re going to have a deal with China.”

The framework aims to avert an escalation of the trade war after Trump had threatened new tariffs and other trade curbs from 1 November. Both countries had previously rolled back most triple-digit tariffs under a trade truce, set to expire on 10 November.

Officials said they discussed trade expansion, extending the truce, rare earths, TikTok, US port fees, and other issues. Bessent described the talks as “very substantial negotiations,” while Li called them “candid.”

While the White House confirmed the upcoming Trump-Xi discussions, Beijing has yet to officially announce the meeting. On the sidelines of the ASEAN Summit, Trump suggested additional talks could take place in China and the US.

Key points for discussion include Chinese purchases of US soybeans, Taiwan, the release of jailed Hong Kong media tycoon Jimmy Lai, and US-China cooperation regarding Russia amid the ongoing war in Ukraine.

The trade truce remains fragile. Recent weeks have seen renewed tensions, sanctions, and export curbs, particularly around China’s expanded control of rare earth exports, which has caused global supply concerns.