Top economic officials from the United States and China have reached an initial framework for a new trade agreement, setting the stage for a potential breakthrough when U.S. President Donald Trump and Chinese President Xi Jinping meet later this week.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top negotiator Li Chenggang on the sidelines of the ASEAN Summit in Kuala Lumpur on Sunday. The meeting marked the fifth round of in-person talks since May between the two sides, who have been working to prevent a fresh escalation of the long-running trade conflict.

“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters following the talks. Speaking later on NBC’s Meet the Press, he said the tentative deal aims to suspend China’s expanded export controls on rare earth minerals and magnets, while also deferring a new round of 100% U.S. tariffs on Chinese goods that Trump had threatened to impose.

The proposed agreement also includes discussions on Chinese purchases of American soybeans and other agricultural goods, efforts to rebalance trade between the two countries, and measures to address the U.S. fentanyl crisis, which had prompted Washington to levy tariffs on certain Chinese products.

Chinese Vice Premier Li Lifeng confirmed that both sides had reached a “preliminary consensus” and would now move to internal review and approval. “The U.S. position has been tough,” Li said. “We have experienced very intense consultations and engaged in constructive exchanges to explore solutions and arrangements to address these concerns.”

President Trump, who arrived in Malaysia on Sunday for the ASEAN Summit as part of a five-day Asia tour, expressed optimism about an eventual breakthrough. “I think we’re going to have a deal with China,” he told reporters.

The Trump-Xi meeting, expected to take place in South Korea on October 30, could mark a pivotal moment in easing trade tensions that have strained global markets. The current trade truce, which rolled back most of the high tariffs imposed during earlier stages of the trade war, is set to expire on November 10.

Both sides confirmed that the Kuala Lumpur discussions also touched on other sensitive issues, including trade expansion, fentanyl regulation, U.S. port entrance fees, rare earth exports, and the future of Chinese tech platforms such as TikTok.

Describing the dialogue as “candid” and “constructive,” Li said the process had been “intense but productive,” while Bessent characterized the talks as “very substantial negotiations.”

The United States is reportedly open to extending the trade truce pending Trump’s final decision—potentially marking the second such extension since May.

Although Washington has officially announced the upcoming Trump-Xi meeting, Beijing has not yet confirmed the encounter. Trump hinted that additional meetings could follow, saying, “We’ve agreed to meet. We’re going to meet them later in China, and we’re going to meet in the U.S., in either Washington or at Mar-a-Lago.”

The ASEAN Summit in Kuala Lumpur serves as the opening leg of Trump’s Asia-Pacific tour, which will also include stops in Japan and South Korea, where trade and regional security will dominate the agenda. (ILKHA)