The United States and China have agreed on an interim framework for a trade deal, officials from both sides announced on Sunday.
The situation came to light during talks on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit held in Kuala Lumpur. US President Donald Trump and Chinese leader Xi Jinping hope to further hammer out a deal during a high-stakes meeting on Thursday in South Korea, the final stop on Trump’s Asian tour.
The purpose of the trip is to address investment agreements and peace efforts, with the U.S. leader visiting Malaysia, followed by visits to Japan and South Korea.
Tensions are rising between the world’s two largest economies. Recently, the Chinese government decided to tighten restrictions on the export of rare earths needed for advanced technology.
In response, President Trump threatened to impose additional tariffs on imports from China.
Trump’s Treasury Secretary, Scott Bessent, called the framework a “very successful framework” and said the deal would eliminate President Trump’s tariffs starting Nov. 1, but that China could delay implementing restrictive measures by a year.
Chinese authorities did not provide details.
President Trump also asserted that both China and the United States “want a deal” and expressed confidence that a deal is close.
The US leader reiterated his plans to visit China in the future and extended an invitation to President Trump to visit Trump’s private Mar-a-Lago club in either Washington or Florida.