In a significant diplomatic breakthrough, China announced on Sunday that it had reached a “basic consensus” with the United States on the contours of a potential trade deal, days before US President Donald Trump and Chinese President Xi Jinping are scheduled to meet. The announcement came after two days of intense negotiations between Chinese Vice Premier He Lifeng and a US delegation led by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer on the sidelines of the ASEAN Summit in Kuala Lumpur.
According to China’s state-run Xinhua News Agency, Vice Premier Lifeng described the exchanges as “candid, in-depth, and constructive,” stressing that the foundation of Beijing–Washington economic relations lies in “mutual benefit and win-win results.” He said, “Both countries gain from cooperation and lose from confrontation.” The discussions reportedly covered a wide range of economic issues, including tariff rollbacks, agricultural trade, export controls, and joint measures to combat fentanyl trafficking.
Speaking after the talks, US Treasury Secretary Scott Bessent told CBS News that President Trump’s earlier threat to double tariffs on Chinese imports — imposing an additional 100% — had now been withdrawn. “We had a very good two-day meeting. I believe that the threat of the 100% tariff is off the table, as is the immediate threat of China launching a global export control regime,” Bessent said. The tariff proposal was originally part of Washington’s response to Beijing’s tightening of export restrictions on rare earth materials critical for global industries such as electronics, green energy, and defense.
Sources cited by CNN said both countries are now focused on preventing further escalation in trade tensions that had flared earlier this month. The new tariffs, initially slated to take effect on November 1, have been shelved amid signs of renewed dialogue and cooperation. President Trump, who arrived in Malaysia on Sunday as part of his five-day Asia tour, struck an optimistic tone when asked about the progress. “I think we’re going to have a deal with China,” he told reporters, before heading to South Korea where he is expected to meet President Xi Jinping on October 30.
