 "China to delay rare earth export rules, resume US soybean purchase under ‘substantial framework’ to avert tariffs")
Amid renewed trade tensions with Beijing, US Treasury Secretary Scott Bessent announced on Sunday that Washington and Beijing had reached a “very substantial framework” aimed at preventing the United States from imposing 100 per cent tariffs on Chinese goods and allowing a deferral of China’s planned export controls on rare earth minerals.
He also said the US expects China to resume large-scale purchases of American soybeans over the next few years and delay its new rare earth licensing rules by a year, following two days of trade talks in Malaysia.
The breakthrough came after high-level discussions in Kuala Lumpur ahead of a planned meeting next week between President Donald Trump and Chinese President Xi Jinping.
In an interview with NBC’s Meet the Press, Bessent said China was “ready to make a deal” after the negotiations. He confirmed that the framework paves the way for the Trump–Xi meeting this week, which aims to avert the sweeping tariffs Trump has threatened to impose on November 1 if Beijing proceeds with rare earth export restrictions.
“I’m also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed,” Bessent said, highlighting the progress made during the talks.
China dominates the global production and processing of rare earth minerals—essential for electronics and defence technologies—and recent signals of export curbs have raised concerns in Washington over supply chain vulnerabilities.
“President Trump gave me tremendous negotiating leverage with the threat of the 100% tariffs, and I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other matters with the Chinese,” Bessent added.
Impact Shorts
More ShortsPresident Trump arrived in Malaysia on Sunday for the Asean Summit, the first stop of a five-day Asia tour expected to culminate in a face-to-face meeting with Xi in South Korea on Thursday.
According to Bessent, Trump may also visit Beijing early next year, ahead of the Lunar New Year on February 17, with a follow-up meeting in Washington planned before Xi’s visit to the United States for the G20 summit next autumn.
Trump has indicated that fentanyl production and exports will be a key topic in his talks with Xi, as Washington continues to accuse Beijing of failing to curb shipments of precursor chemicals used in the deadly opioid’s production.
Following the Kuala Lumpur discussions, China’s chief trade envoy Li Chenggang said both nations had reached a preliminary consensus to extend their trade truce while addressing issues linked to fentanyl and export controls. Li and Vice Premier He Lifeng led the Chinese delegation, while Bessent and US Trade Representative Jamieson Greer represented Washington.
Striking an optimistic tone after the talks, President Trump said, “I think we’re going to have a deal with China,” hinting at further meetings with Xi in both China and the United States in the months ahead.
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