US, China agree on trade framework ahead of crucial Trump-Xi meeting

Top Chinese and US economic officials agreed on the framework for a trade pact on Sunday as US President Donald Trump said he was confident of hashing out a deal with Chinese President Xi Jinping during their meeting in the coming days. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met Chinese Vice-Premier He Lifeng and top trade negotiator Li Chenggang on the sidelines of the ASEAN Summit in Kuala Lumpur for a 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. He told NBC’s “Meet the Press” that he anticipated the agreement would defer China’s expanded export controls on rare earth minerals and magnets, and avoid a new 100 per cent US tariff on Chinese goods threatened by Trump. He said Trump and Xi would discuss soybean and agricultural purchases from American farmers, more balanced trade and resolving the US fentanyl crisis, which was the basis of 20 per cent US tariffs on Chinese goods.

China’s Li said both sides had reached a “preliminary consensus” and would next go through their respective internal approval processes. “The US 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.”

Trump is expected to meet Xi in South Korea on October 30.