The United States and China have reached a “preliminary consensus” on resolving their ongoing trade disputes, following two days of bilateral negotiations in Malaysia, according to senior Chinese trade official Li Chengang.
“China and the U.S. have constructively explored possible solutions to issues of mutual concern and reached a preliminary consensus,” said Li Chengang, China’s Deputy Minister of Commerce and chief international trade negotiator, speaking to reporters after talks in Kuala Lumpur.
The discussions came shortly after China imposed restrictions on the export of rare earth minerals vital for modern technologies and U.S. President Donald Trump threatened to impose 100% tariffs on Chinese goods. The escalating trade dispute had raised fears of a global economic slowdown.
U.S. Treasury Secretary Scott Bessent, who participated in the Kuala Lumpur meetings, announced that China will delay the implementation of rare earth export restrictions and resume purchases of American soybeans, thereby helping to avoid a significant tariff increase on Chinese exports to the United States.
Trump had earlier warned that the new tariffs could take effect on November 1, but Bessent told ABC News that “they’ve avoided that.”
“China will postpone this for a year while reassessing the situation,” Bessent said, adding that Beijing also agreed to make substantial agricultural purchases from U.S. farmers during talks with Vice Premier He Lifeng.
Bessent described the discussions with the Chinese delegation as creating a “very positive context” for the upcoming meeting between President Trump and President Xi Jinping.
Trump also expressed optimism, saying, “They want to make a deal, and we want to make a deal.”
The announcement was made during the ASEAN Summit in Kuala Lumpur, which both leaders attended. The highlight of Trump’s Asia tour is expected to be his meeting with Xi Jinping in Seoul on Thursday, during the Asia-Pacific Economic Cooperation (APEC) Summit.
“I think we will reach a good agreement with China,” Trump told reporters confidently.
