US and China Reach Framework for Trade Deal Ahead of Trump–Xi Meeting

The United States and China have reached a preliminary framework for a potential trade 

The US and China have already agreed on a rough outline of a possible trade deal, which paves the decisive negotiations between President Donald Trump and President Xi Jinping later in the week. On Sunday, the US Treasury Secretary Scott Bessent confirmed the development.

According to Bessent, the latest talks were a very positive step that would prevent another wave of 100 percent tariffs on Chinese products that were set to be imposed on November 1. In subsequent interviews with ABC News, he stated that tariffs would be avoided, that both parties had agreed in principle to suspend China on its restrictions on rare earth exports, and to restart large-scale imports of US soybeans to China.

Positive Negotiations Before the Meeting of the Leaders

Bessent also held a meeting with the senior Chinese trade officials on the fringes of the Association of Southeast Asian Nations (ASEAN) Summit in Malaysia, where President Trump is also present during his multi-country visit to Asia.

Chinese Vice Commerce Minister Li Chenggang said that both parties had a preliminary agreement after very intense consultations. Beijing said that the talks were positive, and this was an indication of a new desire to normalize trade relations.

In a press conference before he met with Xi Jinping in Busan, South Korea, on Thursday, President Trump said he is confident.

After two days of talks between Bessent and the Vice Premier of China, He Lifeng, Trump said, I think we are going to make a deal.

New Trade Agreements and Regional Diplomacy

The Asian tour by President Trump was also initiated with a wave of diplomatic and trade initiatives. He announced a number of new trade agreements and facilitated a broader ceasefire between Thailand and Cambodia within six hours of his arrival in Kuala Lumpur for the ASEAN Summit.

The ceasefire is based on previous talks, which had terminated fatal border conflicts between the two nations. Trump described the truce as a monumental move and peace and cooperation as crucial to the economic growth of the region in the long term.

US deepens Economic Relations in Asia

On Sunday, the White House announced six trade deals, such as critical minerals and rare earth partnerships with Thailand and Malaysia. The transactions are meant to decrease the US reliance on Chinese supply chains and enhance regional co-operation in the booming clean technology industry.

Malaysia agreed not to impose export bans or quotas on the export of rare earths and other critical minerals to the US, but it is not clear whether the agreement applies to raw or processed products.

In the meantime, the US and Vietnam signed an agreement that allows exporters in the two countries to enjoy unprecedented access to the markets of the other. The US will keep its existing tariff rates of 19 percent on the majority of exports of Malaysia, Thailand, and Cambodia, and 20 percent on Vietnamese products under the deal, although some products will be exempt.

Negotiations with Brazil Widen Trade Drive

During another meeting, President Trump also held a meeting with Brazilian President Luiz Inacio Lula da Silva to negotiate on how to cut Brazil’s 50 percent tariffs on US imports. The two leaders were optimistic about increased economic cooperation.

Trump said after the talk that he believed they could make some pretty good deals.

Summary

The initial deal between the US and China is a crucial move towards the alleviation of the tensions between the two largest economies in the world. As the Trump-Xi meeting in Busan nears, both parties seem eager to seal a deal that would stabilize the world market, revive agricultural exports, and guarantee further access to some of the most important minerals that are essential to modern industries.

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