Chinese and American officials agreed to the “framework” for a trade deal, they said on Sunday. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang for negotiations ahead of the Association of Southeast Asian Nations summit in Malaysia.
“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,” Greer told reporters in Kuala Lumpur, according to The New York Times.
Bessent said there’s a “a very successful framework” for President Donald Trump and Chinese President Xi Jinping to discuss when they meet on Thursday in South Korea. Trump, who arrived in Malaysia Sunday, and Xi are set to discuss soybean and agricultural purchases from American farmers, more balanced trade and resolving the U.S. fentanyl crisis, Bessent said.
Trump previously said the first topic he wants to talk with Xi about at their Thursday meeting is fentanyl. One of the reasons Trump gave for the tariffs on China is because it has not stopped the flow of fentanyl to the United States. Chinese officials argue that the fentanyl crisis in the U.S. is a “a pretext to threaten China” with tariffs, and that it can only end by stopping demand for the opioid.
Li confirmed the U.S. and China had reached a “preliminary consensus,” though each side still has to approve it internally, Reuters reported.
“The U.S. position has been tough,” Li said. “We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns.”
Chinese-US trade war
Trump’s trip to Asia comes during a U.S.-China trade war that both are trying to de-escalate. China imposed increased export restrictions on rare earth minerals and magnets. In response, Trump threatened 100% tariffs on Chinese goods that would go into effect Nov. 1.
Although both sides are currently under a trade truce, this was initially set to end on Nov. 10. Reuters quoted Bessent as saying that the truce could possibly be extended, though it is ultimately Trump’s decision.
On NBC News’ “Meet the Press” Sunday, Bessent said China is ready to make a deal “after two days of negotiations.”
Bessent added he’s anticipating “that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed.”
