China announced on Sunday that it has reached a “basic consensus” 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 “candid, in-depth, and constructive.”
Everything you need to know about the meeting
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 Beijing–Washington economic relations lies in “mutual benefit and win-win results.” He added that “both countries gain from cooperation and lose from confrontation.”
US signals tariff threat may be lifted
After the talks, US Treasury Secretary Scott Bessent told CBS News that Trump’s earlier threat to double tariffs on Chinese goods by an additional 100% has now been withdrawn. The proposed measure was originally part of Washington’s response to China’s tightened export restrictions on rare earth materials critical inputs for global industries such as electronics and defense.
Bessent explained, “We 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.”
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 soon
Trump arrived in Malaysia on Sunday for the ASEAN summit, the first stop in his five-day tour of Asia which will culminate in a meeting with Xi Jinping in South Korea on October 30. Speaking to reporters, Trump said, “I think we're going to have a deal with China.”
