US and Chinese officials agreed on a trade deal framework to pause steeper US tariffs and Chinese rare earth export controls. The deal awaits approval from Presidents Donald Trump and Xi Jinping at their October 31 meeting during the APEC summit in Gyeongju, South Korea.
US Treasury Secretary Scott Bessent said talks in Kuala Lumpur eliminated Trump’s 100% tariff threat starting November 1 and delayed China’s rare earth licensing by a year. “We have a successful framework for leaders to discuss,” Bessent told reporters.
- Tariff Truce Extension: Beyond November 10 expiration.
- Soybean Purchases: China to resume US soybean buys after favouring Brazil/Argentina.
- Rare Earths: China controls 90%+ supply; curbs eased for review.
- Other Issues: Fentanyl crisis, US port fees, TikTok ownership transfer.
Bessent noted that soybean farmers will benefit in the long term. Trade Representative Jamieson Greer said it balances trade deficits and improves access to rare earths.
Vice Premier He Lifeng and negotiator Li Chenggang called it a “preliminary consensus,” defending interests amid “intense consultations.” China seeks internal approval.
Trump, in Malaysia for ASEAN, said: “I think we’ll have a deal with China.” He plans further meetings in China and the US (Washington or Mar-a-Lago). The agenda includes soybeans, Taiwan, Jimmy Lai’s release, and Russia-Ukraine aid.
Tensions rose after May Geneva truce extensions failed, leading to sanctions. China’s rare earth curbs caused shortages; the US considered software export blocks. The deal revives stability.
The framework reduces trade-war risks, benefiting global supply chains. Trump-Xi approval could stabilise markets.
