Washington and Beijing Agree on Preliminary Trade Framework Ahead of Trump-Xi Summit

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Informed sources reported that senior officials from the United States and China have reached a preliminary agreement aimed at reducing the severity of existing trade tensions between the two countries, and postponing the imposition of tariffs and restrictions that were imminent, on the sidelines of the ASEAN summit held in Kuala Lumpur.

The US Treasury Secretary, Scott Bisant, explained that this framework would avoid imposing exorbitant US fees of up to 100% on imports from China, which were scheduled to be applied on the first of November. In return, China will postpone for a full year the implementation of a licensing system for the export of rare minerals, in order to subject it to review and scrutiny. Beijing sufficed by pointing to the existence of a “preliminary consensus” pending the necessary internal approvals.

It is expected that this agreement will be finalized during an upcoming meeting between Presidents Donald Trump and Xi Jinping on Thursday, on the sidelines of the “APEC” summit to be held in Gyeongju, South Korea. Washington confirmed this meeting, while Beijing has not yet announced it. Bisant expects to extend the customs truce beyond November 10, in addition to urging China to resume purchasing American soybeans, which have been halted since last September.

The US Trade Representative, Jamison Greer, described the progress made as an important step towards strengthening access to rare Chinese earth minerals and achieving greater balance in trade relations between the two countries. The discussions also included the issue of transferring ownership of “TikTok” to the United States, cooperation in facing the fentanyl crisis, in addition to some other trade issues, such as port fees. The chief Chinese negotiator, Li Cheng Gang, affirmed that the talks were “intense and constructive,” while Beijing affirmed its commitment to defending its interests and seeking practical solutions.

Trump, at the start of a five-day Asian tour, expressed his optimism, saying: “I think we will reach an agreement with China,” hinting at later meetings with Xi in China, then in the United States, and perhaps in Mar-a-Lago. Their meeting is also expected to address the Taiwan file, the case of Jimmy Lai in Hong Kong, in addition to the role that Beijing can play in influencing Russia with regard to the Ukrainian crisis.

This initial framework comes after months of imposing mutual fees, sanctions and export bans, and escalating global concern about the restrictions imposed by China on rare minerals and vital magnets that are necessary for the electric car and semiconductor industries. Despite this breakthrough, caution still prevails on both sides; This agreement is seen as a fragile but hopeful step towards achieving gradual stability in trade relations between the two great powers.