Economic officials agree on trade deal outline for upcoming Trump-Xi summit
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US President Donald Trump speaks during the ASEAN-US Summit in Kuala Lumpur, Malaysia, October 26, 2025. — Reuters
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Senior Chinese and US economic officials met on Sunday to finalize the framework for the trade deal, which US President Donald Trump and Chinese President Xi Jinping are expected to review later this week. U.S. officials said the deal would prevent high U.S. tariffs on rare earths and Chinese export controls.
US Treasury Secretary Scott Besant said the talks on the sidelines of the ASEAN summit in Kuala Lumpur had ended Trump’s threat of 100% tariffs on Chinese imports starting November 1.
Besant also said he expects China to delay implementation of its rare earth minerals and magnets licensing regime for a year while the policy is reconsidered.
Chinese officials were more secretive about the talks and did not offer any details about the outcome of the meetings.
Trump and Xi will meet on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit to sign the terms. While the White House has officially announced the highly anticipated Trump-Xi talks, China has yet to confirm that the two leaders will meet.
“I think we have a very successful framework for leaders to discuss on Thursday,” Besant told reporters as he and US Trade Representative Jameson Greer met with Chinese Vice Premier He Lang and top trade negotiator Li Chenggen for their fifth round of in-person talks since May.
Besant said he expects the tariff war with China to be extended beyond its Nov. 10 expiration date, and that China will resume substantial purchases of U.S. soybeans after buying none in September, while not favoring soybeans from Brazil and Argentina.
“Once the terms of the deal are announced, U.S. soybean growers will feel pretty good about what’s going on for both this season and next season,” Besant told the ABC program “This Week.”
Greer told the “Fox News Sunday” program that the two sides agreed to stop some punitive actions and “find a way where we can have more access to rare earths from China, we can try to balance our trade deficit with sales from the United States.”
Trump Expects No Deal, Chinese Advise Caution
China’s Li Chenggen said the two sides had reached a “preliminary consensus” and would then go through their respective internal approval processes.
“The US position has been tough, while China has been steadfast in defending its interests and rights,” Li said through a translator. “We have experienced very intense consultation in a constructive exchange seeking solutions and arrangements to address these concerns.”
Trump arrived in Malaysia on Sunday for the Association of Southeast Asian Nations summit, the first stop on a five-day Asia tour that is expected to conclude with a face-off with XI in South Korea on Thursday.
After the weekend talks, Trump struck a positive tone, saying, “I think we’re going to make a deal with China.”
Trump had threatened 100% tariffs on Chinese goods and other trade restrictions starting November 1, in retaliation for expanded export controls on China’s rare earth magnets and minerals.
China controls more than 90% of the world’s supply of materials, which are essential for high-tech manufacturing, from electric vehicles to semiconductors and missiles. The export controls and Trump’s threatened retaliation will disrupt a delicate six-month truce in which China and the United States cut tariffs that have quickly risen to triple-digit rates on each side.
U.S. and Chinese officials said that, in addition to rare earths, they discussed trade expansion, the U.S. fentanyl crisis, U.S. port entry fees, and transferring Tektuk to U.S.-owned control.
Besant told NBC’s “Meet the Press” program that the two sides will have to come up with details of the Tectonic Agreement, which allows Trump and Xi to “consummate transactions” in South Korea.
Talking points with XI include soybeans, Taiwan
On the sidelines of the ASEAN summit, Trump hinted at possible meetings with the XI in China and the United States.
“We agreed to meet. We’re going to meet with him later in China, and we’re going to meet in the United States, in Washington or Mar-a-Lago,” Trump said.
Among Trump’s talking points with XI were Chinese purchases of U.S. soybeans, concerns surrounding Taiwan, which China views as its territory, and the release of Hong Kong media tycoon Jimmy Lai.
Trump also said he would seek China’s help in US dealings with Moscow, as Russia’s war in Ukraine escalates.
Tensions between the world’s two largest economies have flared in the past few weeks as a fragile trade war, reached after the first round of trade talks in Geneva in May and extended in August, has failed to deter the US and China from threatening each other with more sanctions, export curbs, and strong retaliation.
China’s expanded controls on rare earth exports have created global shortages. That has prompted China to consider a block on software-driven exports, from laptops to jet engines, according to a Reuters report.
