Chinese and American officials have reached a tentative “framework” for a long-awaited trade deal, marking a potential turning point in years of economic tension between the world’s two largest economies. The agreement was announced Sunday following two days of intensive negotiations in Malaysia.
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang in Kuala Lumpur, ahead of the Association of Southeast Asian Nations (ASEAN) summit. Both sides described the talks as “constructive” and said they had made substantial progress toward resolving key trade and policy disputes.
“We are moving forward to the final details of the type of agreement that the leaders can review and decide if they want to conclude together,” Greer told reporters, according to The New York Times.
Bessent called the framework “a very successful” basis for discussion between President Donald Trump and Chinese President Xi Jinping, who are scheduled to meet Thursday in South Korea. Trump arrived in Malaysia Sunday, part of a broader Asia trip aimed at strengthening U.S. economic ties and regional alliances.
Key Issues on the Table
The framework reportedly includes commitments on U.S. agricultural exports, particularly soybean and grain purchases — a major priority for Trump as he seeks to support American farmers hit by tariffs. It also covers market access, intellectual property protections, and rules on fentanyl production, a central issue in U.S.-China relations.
Trump has repeatedly blamed China for allowing the flow of fentanyl — a synthetic opioid fueling the U.S. overdose crisis — to reach American shores. “The first topic I want to talk with Xi about is fentanyl,” Trump said earlier this month. The administration has used China’s role in the drug trade as one of the justifications for maintaining tariffs.
Chinese officials, however, have countered that the U.S. is using the fentanyl issue as a “pretext to threaten China” and argue that the crisis stems from American demand, not Chinese supply.
Signs of a Thaw
Speaking to reporters, Vice Premier He Lifeng said the discussions had been “difficult but productive,” while Li confirmed that a “preliminary consensus” had been reached. Both sides, however, must still seek domestic approval before finalizing any deal.
“The U.S. position has been tough,” Li said, according to Reuters. “We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns.”
The tentative deal comes amid a fragile trade truce between the two countries. China has imposed export restrictions on rare earth minerals and magnets, materials critical to electronics and defense manufacturing. In response, Trump has threatened 100% tariffs on Chinese goods, set to take effect November 1.
Although the current truce was scheduled to expire November 10, Bessent told Reuters that it could be extended — though he emphasized that “it’s ultimately the president’s decision.”
A Turning Point — or a Pause?
On NBC’s Meet the Press Sunday, Bessent sounded cautiously optimistic, saying China appeared ready to finalize a deal “after two days of negotiations.” He added that he expected “some kind of deferral on the rare earth export controls that the Chinese had discussed,” signaling possible movement on one of the more contentious issues.
Still, major uncertainties remain. The framework does not guarantee a final agreement, and previous U.S.-China trade negotiations have collapsed at the last minute over enforcement and compliance concerns.
If successful, however, the deal could help stabilize global markets rattled by the trade war and demonstrate a rare moment of cooperation between Washington and Beijing at a time of heightened geopolitical strain.
