Kuala Lumpur (TDI): Senior US and Chinese officials have drawn up a preliminary framework that could pause new tariffs and delay China’s export curbs on rare earth minerals, setting the stage for Presidents Donald Trump and Xi Jinping to review the deal later this week, according to US officials.
US Treasury Secretary Scott Bessent said that discussions held on the sidelines of the ASEAN Summit helped remove the threat of Washington imposing 100% tariffs on Chinese goods from November 1, Reuters reported.
Bessent noted that Beijing is likely to postpone the rollout of its rare earth licensing rules by a year, giving both sides time to reassess the policy. While Chinese representatives refrained from confirming details, they described the talks as “constructive.”
Read More: Trump Seeks Breakthrough with China’s Xi During Asia Visit
Trump and Xi are expected to meet Thursday during the APEC Summit in Gyeongju, South Korea, to formalize the understanding. The White House has already announced the meeting, though Beijing has not yet issued an official confirmation.
“We have built a solid framework for our leaders to move forward,” Bessent told reporters after he and US Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and senior negotiator Li Chenggang.
The agreement would likely extend the existing tariff truce beyond its November 10 deadline and pave the way for China to resume large-scale purchases of American soybeans, after months of favoring imports from South America.
Greer told Fox News Sunday that both sides had agreed to pause several retaliatory measures and to seek “a balanced trade environment where the US gains more access to China’s rare earth exports.”
Read More: Trump Admits 100% China Tariff ‘Not Sustainable,’ Confirms Meeting with Xi
Chinese negotiator Li Chenggang described the discussions as “intense but productive,” saying both countries had reached a “preliminary consensus” that now requires internal review.
“The US side has been firm, and so have we,” Li said. “But we have exchanged ideas and explored possible arrangements that could address each other’s legitimate concerns.”
President Trump, who arrived in Malaysia on Sunday for the ASEAN Summit, struck an upbeat note. “I think we’re going to have a deal with China,” he said.
