Major Breakthrough in U.S.-China Trade Talks: New Framework Agreement Reached in Kuala Lumpur

KUALA LUMPUR:A significant breakthrough has been achieved in the long-running trade negotiations between the **United States and China**, as top economic officials from both countries reached an agreement on a new **trade framework** during high-level talks in Malaysia on Sunday.

According to international media reports, **U.S. President Donald Trump** expressed satisfaction with the development, saying he was **hopeful of finalizing the deal** during his upcoming meeting with **Chinese President Xi Jinping** in the coming days.

The talks took place on the sidelines of the **ASEAN Summit**, where **U.S. Treasury Secretary Scott Bassent** and **Trade Representative Jamison Greer** met with **Chinese Vice Premier He Lifeng** and **Senior Negotiator Li Chenggang**. This marked the **fifth in-person round of negotiations** since May.

Under the **proposed framework**, China has agreed to **suspend its rare-earth mineral licensing system** for one year, while the U.S. has pledged to **refrain from imposing a 100% tariff increase** on Chinese goods. Bassent said the move is expected to **ease trade tensions** and **stabilize agricultural markets**.

The U.S. Treasury Secretary further confirmed that **China will soon resume purchases of American soybeans**, a step likely to help **rebalance trade relations** between the two economic powers.

Chinese negotiator **Li Chenggang** also confirmed that both sides had reached a **“preliminary consensus.”** He noted that while the U.S. maintained a firm stance, the discussions were “**constructive and paved the way for a comprehensive agreement.**”

Sources said that the negotiations also covered **agricultural trade, the fentanyl crisis, TikTok regulations, port fees, and rare-earth exports**.

President Trump, currently on a **five-day tour of Asia**, is expected to meet President Xi **on October 30 in South Korea** to finalize the trade pact.

The development comes amid heightened efforts by both nations to **prevent a renewed escalation** in their ongoing **trade war**. Trump had earlier threatened to impose **100% tariffs** on Chinese imports starting in November, to which Beijing responded by announcing potential **export restrictions on rare-earth minerals**.

Sources added that the **temporary trade truce** agreed upon in May is due to expire on **November 10**, but both sides are **likely to extend it** following this progress.

While the **White House has confirmed** the Trump-Xi meeting, **Beijing has yet to issue an official statement** on the matter.