The United States and China have reportedly reached a critical “framework” agreement to prevent the imposition of a severe new 100% U.S. tariff on Chinese goods, paving the way for a high-stakes meeting between President Donald Trump and Chinese President Xi Jinping this week.
Treasury Secretary Scott Bessent announced the breakthrough Sunday following two days of negotiations with Beijing’s top trade negotiator, Li Chenggang, on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia.
“President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs, and I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese,” Bessent told NBC News’ “Meet the Press.”
The framework is specifically designed to avert the harsher tariffs threatened by President Trump, which were scheduled to take effect on November 1 should China proceed with plans to restrict the export of rare earth minerals. Rare earth minerals are vital components for electronic devices and defense technologies, and China currently holds a near-monopoly on their production and processing.
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Bessent stated that he is “anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed.”
Leaders Set to Meet in South Korea
The preliminary agreement sets the stage for a face-to-face meeting between Trump and Xi, currently anticipated to take place in South Korea on Thursday during the U.S. President’s five-day Asia tour.
China’s top trade negotiator, Li Chenggang, confirmed on Sunday that a “preliminary consensus” was reached after discussions on a range of issues, including an extension of their current trade truce, fentanyl, and export controls.
In addition to trade disputes, President Trump indicated that his first priority for the meeting with Xi is addressing the fentanyl crisis. The U.S. has long accused China of failing to curb the international flow of precursor chemicals for the deadly opioid.
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Bessent also noted that the talks would encompass “substantial soybean and [agriculture] purchases for our American farmers.”
Striking an optimistic tone after the weekend talks in Malaysia, President Trump said, “I think we’re going to have a deal with China,” and hinted at future meetings, including a visit to Xi in Beijing early next year and a meeting in the U.S. later in the fall.
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