The United States and China have reported “significant progress” in trade talks held in Malaysia, raising hope that Presidents Donald Trump and Xi Jinping could finalize a deal during their upcoming meeting in South Korea. The negotiations took place on the sidelines of the ASEAN Summit and resulted in both sides signalling a ready framework for agreement.
The meeting between Trump and Xi is set for Thursday at the APEC Summit in Gyeongju, their first face-to-face encounter since 2019 and Trump’s return to the White House. US Treasury Secretary Scott Bessent said negotiators have crafted a “framework for Trump and Xi to discuss in South Korea,” and suggested the deal may avoid export controls on rare earths and sidestep the full 100% tariffs Trump recently threatened.
In the interviews with US networks, Bessent explained that China agreed to large-scale purchases of American agricultural goods, including soybeans, which he said would be welcomed by US farmers. Chinese Vice Premier He Lifeng confirmed that a “basic consensus” has been reached and that both sides have agreed to finalize specific details and begin domestic approval processes.
Financial markets in Asia reacted positively: Japan’s Nikkei 225 rose 2.1%, South Korea’s KOSPI climbed 2.3%, and Hong Kong’s Hang Seng gained 0.85% by midday Monday. Traders took the developments as a sign that the long trade conflict between the world’s two largest economies may be entering a new phase.
President Trump, following the ASEAN Summit in Malaysia, is scheduled to travel to Japan to meet Prime Minister Sanae Takaichi, then on to South Korea for the summit with Xi. Trump’s administration has long favoured tariffs, especially against China, citing intellectual property concerns and trade imbalances. Earlier this month, China announced export licensing rules for rare-earth magnets and semiconductor materials, a move that triggered fears of global supply chain disruptions. Trump responded by threatening a 100% tariff on Chinese imports starting on November 1.
This week’s meeting could mark a turning point in US-China trade relations, with both sides signalling willingness to step back from further escalation. Analysts will watch for the details of any agreement, especially how it addresses rare earths, tariffs, and agricultural trade.
