China and the United States agreed on Sunday to a preliminary framework deal after two days of talks in Kuala Lumpur, signalling a de-escalation of tensions in the lead-up to a potential meeting between the presidents of the world’s two largest economies.

The talks in the Malaysian capital, led by Vice-Premier He Lifeng and US Secretary of the Treasury Scott Bessent, came on the heels of a fresh surge of tensions in the volatile bilateral relationship and ahead of the November 10 expiration of a temporary tariff truce.

Speaking to reporters after the talks, Chinese trade negotiator Li Chenggang said a “preliminary consensus” was reached, and that it would be sent for approval by both sides domestically.

He described the US position as “tough”, whereas China has been “firm” in defending its own interests and rights.

Both Beijing and Washington “believe a stable China-US relationship is good for both sides”, Li said.

Vice-Premier He said: “The US and China bilateral trade relationship is win-win in nature, fundamentally,” according to a report by the official Xinhua after the trade talks concluded. “Stabilising the relationship between both countries is in line with the interests of the people and matches the world’s expectations.”