Kuala Lumpur: US Treasury Secretary Scott Bessent announced on Sunday that the United States and China have reached a tentative trade framework, which could see China delaying export restrictions on rare earths and increasing its purchase of US soybeans. This potential agreement, if confirmed, would prevent a proposed 100 percent tariff hike on Chinese exports to the US. Bessent highlighted that China is expected to significantly revive its purchases of US soybeans for several years and postpone its enhanced licensing regime for rare earths by a year for further examination.
According to Union of OIC News Agencies, these developments come after two days of intensive trade negotiations between US and Chinese officials in Malaysia. During an interview on CBS's "Face the Nation," Bessent emphasized the substantial nature of the anticipated soybean purchases. He further elaborated on ABC's "This Week," expressing optimism that the upcoming trade deal announcement by President Donald Trump and President Xi Jinping would benefit US soybean farmers in the current and upcoming seasons.
Bessent also conveyed on NBC's "Meet the Press" that the agreement is expected to avert the imposition of a new 100 percent US tariff on Chinese goods, a measure previously threatened by Trump. The discussions between Trump and Xi are set to encompass soybean and agricultural purchases, trade balance improvements, and resolving the US fentanyl crisis, which has been a factor in the 20 percent US tariffs on Chinese products.
China's representative, Li, noted that both countries have achieved a "preliminary consensus" and will now undergo their respective internal approval processes. Li acknowledged the challenging nature of the negotiations, stating, "The US position has been tough. We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns."
President Trump arrived in Malaysia on Sunday for the ASEAN Summit, marking his first stop in a five-day Asia tour, culminating in a face-to-face meeting with Xi in South Korea on October 30. After the talks, Trump expressed optimism, stating, "I think we're going to have a deal with China."
Both nations are eager to prevent an escalation of their trade war, following Trump's threats of new 100 percent tariffs on Chinese goods set to begin on November 1, in response to China's expanded export controls on rare earth magnets and minerals. The trade truce that saw a rollback of triple-digit tariffs on each other's goods is set to expire on November 10.
The discussions covered trade expansion, the potential extension of the truce, fentanyl, US port entrance fees, rare earths, TikTok, and more. Li described the discussions as "candid," while Bessent referred to them as "very substantial negotiations." He also indicated the possibility of extending the trade truce, pending the presidents' decision, marking a second extension since its initial signing in May.
While the White House has officially announced the Trump-Xi talks, Beijing has yet to confirm the meeting. On the sidelines of the ASEAN Summit, Trump mentioned potential meetings with Xi in both China and the United States. The discussions are expected to cover Chinese soybean purchases, Taiwan concerns, and the release of Hong Kong media tycoon Jimmy Lai.
The fragile truce between the world's two largest economies has been tested in recent weeks, as sanctions, export curbs, and retaliatory threats have persisted despite previous agreements. The latest talks have likely focused on China's expanded rare earths export controls, which have led to a global shortage and prompted the Trump administration to consider blocking software-powered exports to China, according to a Reuters report.
