U.S. and Chinese officials have agreed on a preliminary framework for a trade deal, paving the way for a face-to-face meeting between President Donald Trump and Chinese President Xi Jinping. The discussions took place on the sidelines of the ASEAN summit in Kuala Lumpur, marking the fifth in-person negotiation since May.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and chief trade negotiator Li Chenggang. Bessent described the talks as “very substantial” and said the framework sets the stage for leaders to discuss final agreements.

Among the major issues discussed were China’s export controls on rare earth minerals and magnets, which have created global supply concerns, and U.S. tariffs on Chinese goods. Bessent suggested the agreement could delay both China’s new export limits and a threatened 100% U.S. tariff on Chinese products.

President Trump highlighted additional topics for his discussions with Xi, including increased Chinese purchases of U.S. soybeans, resolving the U.S. fentanyl crisis, achieving a more balanced trade relationship, and broader technology and port-related concerns.

Chinese negotiator Li confirmed that a “preliminary consensus” had been reached. “The U.S. position has been tough,” he said. “We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns.”

Trump, who arrived in Malaysia as the first stop on a five-day Asia tour, expressed optimism after the talks. “I think we’re going to have a deal with China,” he said, emphasizing a positive outlook ahead of his planned meeting with Xi in South Korea on October 30.

A Delicate Trade Truce

The framework comes amid a fragile trade truce between the two nations, originally signed in May and extended in August. The truce, which rolled back most triple-digit tariffs, is set to expire on November 10. U.S. and Chinese officials indicated that it could be further extended pending presidential approval.

Both sides discussed broad trade issues, including rare earths, technology exports, TikTok, and U.S. port fees. The talks were described as candid and constructive, reflecting the urgency to prevent further escalation in the trade war after recent weeks of heightened tensions.

Other Key Discussion Points

While the White House confirmed the Trump-Xi meeting, China has yet to publicly announce it. Trump suggested possible future meetings in both China and the U.S., including Mar-a-Lago.

The discussions will also touch on sensitive political topics. Trump is expected to raise concerns over Taiwan, considered by Beijing as Chinese territory, and the release of jailed Hong Kong media tycoon Jimmy Lai. Lai’s detention, related to his defunct pro-democracy newspaper Apple Daily, has become a high-profile symbol of China’s crackdown on civil liberties.

Additionally, Trump indicated plans to seek China’s assistance regarding U.S. dealings with Russia amid the ongoing war in Ukraine.

Fragile Situation Remains

The trade relationship between the U.S. and China remains tense. Despite the truce, both nations have imposed sanctions, export curbs, and threats of retaliatory measures in recent weeks. A major focus has been China’s tightened controls over rare earth exports, critical for global technology industries, which has prompted the U.S. to consider restrictions on exports such as laptops, jet engines, and other software-powered technology.

The upcoming Trump-Xi meeting is expected to be decisive in determining whether the two countries can stabilize trade relations and avoid further economic conflict.

Also Read: JD Vance: U.S. Has the Upper Hand in Trade Tensions with China

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