China and the United States have achieved a โbasic consensusโ on a potential trade agreement after two days of intensive discussions in Kuala Lumpur. The announcement comes just before a scheduled meeting between US President Donald Trump and Chinese President Xi Jinping.
China announced on Sunday that it has reached a โbasic consensusโ with the United States on a possible trade agreement. The breakthrough was achieved only days before US President Donald Trump is due to meet Chinese President Xi Jinping. Lifeng described the exchanges as โcandid, in-depth, and constructive.โ
Everything you need to know about the meetingย
According to a report by Xinhua, the agreement came after two days of negotiations between Chinese Vice Premier He Lifeng and a US delegation led by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. The discussions took place on the sidelines of the ASEAN Summit in Kuala Lumpur.
Reportedly, the agenda covered a wide range of economic issues, including tariffs, export controls, agricultural trade, and joint efforts to combat fentanyl trafficking.
The vice premier emphasised that the foundation of BeijingโWashington economic relations lies in โmutual benefit and win-win results.โ He added that โboth countries gain from cooperation and lose from confrontation.โ
US signals tariff threat may be liftedย
After the talks, US Treasury Secretary Scott Bessent told CBS News that Trumpโs earlier threat to double tariffs on Chinese goods by an additional 100% has now been withdrawn. The proposed measure was originally part of Washingtonโs response to Chinaโs tightened export restrictions on rare earth materials critical inputs for global industries such as electronics and defense.
Bessent explained, โWe had a very good two-day meeting. I would believe that the – so it would be an extra 100% from where we are now, and I believe that that is effectively off the table. I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.โ
According to CNN, both sides are now focusing on preventing further escalation in trade tensions that had intensified earlier this month. The new tariffs were initially scheduled to take effect on November 1.
Trump-Xi meet soonย
Trump arrived in Malaysia on Sunday for the ASEAN summit, the first stop in his five-day tour of Asiaย which will culminate in a meeting with Xi Jinping in South Korea on October 30. Speaking to reporters, Trump said, โI think we’re going to have a deal with China.โ
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