Trump arrived in Malaysia for an ASEAN summit, saying after the talks: “I think we will have a deal with China.”
US President Donald Trump speaks during the ASEAN-US Summit in Kuala Lumpur, Malaysia October 26, 2025. PHOTO: REUTERS
Top Chinese and US economic officials agreed on the framework for a trade deal on Sunday, as US President Donald Trump said he was confident he would hammer out a deal with Chinese President Xi Jinping when they meet in the coming days.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang on the sidelines of the ASEAN summit in Kuala Lumpur for a fifth round of one-on-one talks since May.
“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters.
Read more: US and China race to ease tensions ahead of Trump-Xi Malaysia talks
Bessent told NBC’s “Meet the Press” that he expected the deal would delay China’s expanded export controls on rare-earth minerals and magnets and avoid a new 100 percent U.S. tariff on Chinese goods threatened by Trump.
He said Trump and Xi would discuss buying soybeans and agricultural products from American farmers, more balanced trade and resolving the US fentanyl crisis, which was the basis of the 20% US tariffs on Chinese goods.
Li said both sides have reached a “preliminary consensus” and will then go through their respective internal approval procedures.
“The US position was tough,” Lee said. “We have experienced very vigorous consultations and engaged in constructive exchanges to explore solutions and arrangements to address these concerns.”
Trump arrived in Malaysia on Sunday for an Association of Southeast Asian Nations summit, his first stop on a five-day tour of Asia that is expected to culminate in a face-to-face meeting with Xi in South Korea on October 30.
After the talks, he set a positive tone, saying: “I think we will have a deal with China.”
Commercial truce
Both sides are trying to prevent an escalation of their trade war after Trump threatened new 100 percent tariffs on Chinese goods and other trade restrictions starting Nov. 1 in retaliation for China’s expanded export controls on magnets and rare earth minerals.
Beijing and Washington have rolled back most of the triple-digit tariffs on each other’s goods as part of a trade truce set to expire on November 10.
The S&P 500 gains more than three-quarters of a percent and the Nasdaq climbs more than 1 percent.
U.S. and Chinese officials said they discussed expanding trade, extending the truce, fentanyl, U.S. port entry fees, rare earths, TikTok and more.
Lee described the discussions as “frank”, while Bessent said they were “very substantive negotiations”.
Bessent said the truce could be extended pending the president’s decision, marking a second extension since it was first signed in May.
Talking points
While the White House has officially announced the much-anticipated Trump-Xi talks, Beijing has yet to confirm that the two leaders will meet.
On the sidelines of the ASEAN Summit, Trump hinted at possible meetings with Xi in China and the United States.
“We agreed to meet. We will meet them later in China and we will meet in the US, either in Washington or in Mar-a-Lago,” he said.
Among Trump’s talking points with Xi are Chinese purchases of US soybeans, concerns over democratically-ruled Taiwan, which Beijing considers its territory, and the release of jailed Hong Kong tycoon Jimmy Lai.
The detention of the founder of the now-defunct pro-democracy newspaper Apple Daily has become the most significant example of China’s crackdown on rights in Hong Kong.
Trump also said he would seek China’s help in Washington’s relations with Russia as Moscow’s war in Ukraine continues.
Also read: China’s new five-year plan sharpens industry and technology as US tensions rise
Fragile truce
Tensions between the world’s two largest economies have flared in recent weeks as a tenuous trade truce, reached after the first round of trade talks in Geneva in May and extended in August, failed to prevent the two sides from hitting each other with more sanctions, export restrictions and threats of stronger retaliation.
The latest round of talks likely focused on China’s expanded controls on rare earth exports that have caused a global shortage.
That prompted the Trump administration to consider blocking software exports to China, from laptops to jet engines, according to a Reuters report.
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