Washington. U.S. Treasury Secretary Scott Bessent unveiled a preliminary trade agreement with China that would see his country waive 100 percent tariffs on products from the Asian giant in exchange for Beijing postponing expanded export controls on rare earth minerals and magnets.

This came after US President Donald Trump said he was confident of reaching an agreement with Chinese President Xi Jinping when they meet in the coming days.

Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang on the sidelines of the ASEAN summit in Kuala Lumpur for a fifth round of in-person discussions since May."I think we have a very successful framework for the leaders to discuss on Thursday," Bessent said on NBC's "Meet the Press," where she reported that Trump and Xi will discuss purchases of soybeans and agricultural products from American farmers, more balanced trade, and addressing the U.S. fentanyl crisis, which was the basis for the 20 percent U.S. tariffs on Chinese goods. Li said the two sides had reached a"preliminary consensus" and would then go through their respective domestic approval processes. Trump arrived in Malaysia on Sunday for an Association of Southeast Asian Nations summit, his first stop on a five-day tour of Asia expected to last culminates in a face-to-face meeting with Xi in South Korea on October 30.


Trade truce

Both sides are seeking to avoid an escalation of their trade war after Trump threatened new 100 percent tariffs on Chinese goods and other trade restrictions starting November 1 in retaliation for China’s expanded export controls on magnets and rare earth minerals. Beijing and Washington rolled back most of their triple-digit tariffs on each other’s products under a trade truce, which is set to expire November 10. U.S. and Chinese officials said they discussed trade expansion, an extension of the truce, fentanyl, entry fees at U.S. ports, rare earths, TikTok and more.

The United States and China are set to"consummate" what Treasury Secretary Scott Bessent called a "final deal on TikTok," after months of lawmakers postponing a ban on the popular app unless its U.S. operations were sold to a domestic owner. Trump and Chinese President Xi Jinping could seal the deal as early as Thursday when they meet in South Korea. Li called the discussions"frank," while Bessent said they were "very substantive negotiations." Bessent said the truce could be extended, pending the president's decision, marking the second extension since it was first signed in May. Talking Points

While the White House has officially announced the highly anticipated Trump-Xi talks, Beijing has yet to confirm that the two leaders will meet. On the sidelines of the ASEAN summit, Trump hinted at possible meetings with Xi in China and the United States."We have agreed to meet. We will meet with them later in China and we will meet in the United States, either in Washington or at Mar-a-Lago," he said. Trump's talking points with Xi have included Chinese purchases of US soybeans, concerns over democratically ruled Taiwan, which Beijing considers its own territory, and the release of jailed Hong Kong media mogul Jimmy Lai. The detention of the founder of the now-defunct pro-democracy newspaper Apple Daily has become the most high-profile example of China's crackdown on human rights in Hong Kong. Trump also said he would seek China's help in relations Washington's relations with Russia, while Moscow's war in Ukraine continues.


Fragile Truce


Tensions between the world's two largest economies have risen in recent weeks as a delicate trade truce, reached after a first round of trade talks in Geneva in May and extended in August, failed to prevent the two sides from attacking each other with more sanctions, export restrictions and threats of stronger retaliatory measures.

The latest round of talks has likely focused on China's expanded controls on rare earth exports that have caused a global shortage.