A “very substantial framework” of agreement was reached today (26.10.2025) by the US Treasury Secretary Scott Bessent with Chinese Vice President He Lifeng, which will prevent 100% US tariffs on Chinese goods and achieves a temporary postponement of controls on rare earth exports from China.
Bessent said in an interview on NBC’s “Meet the Press” that the framework reached in Kuala Lumpur, Malaysia, will allow US President Donald Trump and Chinese President Xi Jinping to discuss further trade cooperation next week.
The agenda will include more balanced trade between the US and China, Chinese purchases of US soybeans and other agricultural products and control of the US fentanyl crisis.
Asked if he expected the U.S. to follow through on the threat of 100 percent tariffs on Chinese goods, Bessent said: “No, and I also expect we’ll get some kind of reprieve on the rare earth export controls that the Chinese have been discussing.” Besent added that the final terms will be decided by the two leaders.
Earlier, the head of China’s trade negotiating team, Li Chenggang, said economic officials from China and the US had reached an initial consensus on a range of issues including extending their trade truce, fentanyl and export controls.
Li, along with Chinese Vice President He Lifeng, held talks with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer on de-escalating the trade war on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit. Lee did not elaborate on the matters agreed upon and the terms.