US, China reach trade framework with rare earths on agenda ahead of Trump–Xi meet
Top US and Chinese officials reached a tentative framework for a new trade agreement that could ease tensions, delay looming tariffs, and postpone China’s rare earths export restrictions, US officials said on Sunday.
US Treasury Secretary Scott Bessent announced that negotiations on the sidelines of the ASEAN Summit in Kuala Lumpur had averted President Donald Trump’s planned 100% tariffs on Chinese imports set for November 1. He added that China is expected to postpone for a year the rollout of its rare earths export licensing system while it undergoes review.
Chinese officials were far more reserved, confirming only that both sides achieved a “preliminary consensus” and would now seek domestic approval for any deal.
The framework is to be finalized when Trump and Chinese President Xi Jinping meet Thursday at the APEC Summit in Gyeongju, South Korea. While Washington has confirmed the meeting, Beijing has yet to do so.
Bessent said the agreement is likely to extend the current tariff truce beyond its November 10 expiration and prompt China to resume large-scale purchases of U.S. soybeans, which had halted in September.
U.S. Trade Representative Jamieson Greer described the progress as a step toward greater access to Chinese rare earths and a more balanced trade relationship. The two sides also discussed TikTok’s transfer to U.S. ownership, cooperation on the U.S. fentanyl crisis, and trade issues including port fees.
Chinese negotiator Li Chenggang said talks were “intense but constructive,” emphasizing that Beijing had been firm in defending its interests while seeking practical solutions.
Trump, beginning a five-day Asia tour, said he was optimistic: “I think we’re going to have a deal with China.” He hinted at further meetings with Xi in China and later in the United States, possibly at Mar-a-Lago.
The expected agreement would pause escalating tensions that saw both nations impose steep tariffs earlier this year. China’s restrictions on rare earth minerals and magnets—critical to global industries from EVs to semiconductors—had triggered fears of severe supply disruptions.
Trump’s planned discussions with Xi are also set to touch on Taiwan, the detention of Hong Kong media tycoon Jimmy Lai, and China’s potential role in influencing Russia’s actions in Ukraine.
Despite recent progress, both countries remain wary after months of sanctions, export bans, and retaliatory threats. For now, the tentative deal signals a fragile but hopeful step toward restoring stability in U.S.–China trade relations.
– Ends
With inputs from Reuters
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