Kuala Lumpur: US Treasury Secretary Scott Bessent announced on Sunday that the United States and China have reached a tentative trade framework intended to delay China’s export curbs on rare earths and increase their purchases of US soybeans. This agreement, if confirmed, could prevent a proposed 100 percent tariff increase on Chinese exports to the US.
According to United Nations, Bessent shared his anticipation that China would resume significant purchases of US soybeans for an extended period and postpone its expanded licensing regime for rare earths by a year for reevaluation. Bessent’s comments followed two days of intensive trade talks between US and Chinese officials in Malaysia.
During an appearance on the CBS programme “Face the Nation,” Bessent emphasized the substantial nature of the expected soybean purchases. He also mentioned on ABC’s “This Week” that both President Donald Trump and President Xi Jinping are set to announce the trade deal next Thursday, a development that should reassure US soybean farmers about their prospects for the current and future seasons.
Bessent expressed confidence on NBC’s “Meet the Press” that the agreement would avert the new 100 percent US tariff threat on Chinese goods, which had been proposed by Trump. He added that the discussions between Trump and Xi would cover soybean and agricultural purchases, a more balanced trade relationship, and the resolution of the US fentanyl crisis, which was a factor behind the existing 20 percent tariffs on Chinese products.
Chinese representative Li confirmed that both sides had reached a “preliminary consensus” that would soon undergo internal approval processes. Li acknowledged the difficulty of negotiations, describing them as intense but constructive.
Trump, who arrived in Malaysia for the ASEAN summit, expressed optimism about a potential deal with China. The discussions aimed to de-escalate the ongoing trade war, which had seen Trump threaten additional tariffs starting November 1 in response to China’s rare earth export controls.
The trade truce between Beijing and Washington is set to expire on November 10, although there are discussions about extending it. The talks covered a wide range of issues, including trade expansion, fentanyl, rare earths, and more, with both sides describing the negotiations as candid and substantial.
While the White House has formally announced the upcoming Trump-Xi meeting, Beijing has yet to confirm it. Trump hinted at possible future meetings in both China and the US, touching on topics such as Chinese purchases of US soybeans, Taiwan’s status, and the detention of Hong Kong media tycoon Jimmy Lai. Trump also indicated he would seek China’s assistance in dealing with Russia amid the ongoing conflict in Ukraine.
The recent talks have likely focused on China’s rare earth export controls, which have created a global shortage and led the Trump administration to consider blocking software-powered exports to China.