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News Topical, Digital Desk : The US and China have finalized the outline of a much-anticipated trade deal during the ASEAN summit, signaling a thaw in escalating tensions between the world's two largest economies. US President Donald Trump expressed confidence about his upcoming meeting with Chinese President Xi Jinping, saying they are very close to a comprehensive agreement.
US Treasury Secretary Scott Bessant and Trade Representative Jamieson Greer held the fifth round of talks with Chinese Vice Premier He Lifeng and top negotiator Li Chenggang. Both sides reported that the talks were "constructive and in-depth," and preliminary agreements were reached on sensitive issues such as trade balance, rare earths, agricultural imports, the fentanyl crisis, and TikTok.
Besant gave this indication
He said in an interview that the US threat to raise tariffs on Chinese goods by 100% has been effectively dropped, in exchange for Beijing suspending restrictions on its global rare earth exports. "The tariffs will be postponed," Bessant said.
He said that on export control, China will postpone it for a year until they re-examine it.
What indications were received after the talks between the two sides?
China has indicated it could ease its controls on rare earth exports if the deal is finalized, while the US has also raised the possibility of avoiding 100 percent of new tariffs. The two countries are considering extending the agreement to prevent further escalation of the current trade war, which is set to expire on November 10. "They want a deal, and so do we. It would be a positive step for the global economy," Trump said.
Meanwhile, Chinese negotiator Li Chenggang said the two countries were moving ahead with an "internal approval process", after which a final decision would be taken at a leaders' meeting.
Trump hints at US influence in Asia
During the ASEAN summit, Trump also participated in the announcement of a ceasefire agreement between Thailand and Cambodia, presenting himself as a "global peacemaker" and signaling a strategy to increase US influence in Asia. Global markets are watching the upcoming Trump-Xi meeting with anticipation, as it will determine whether trade tensions will calm or a new round of challenges will emerge.
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