The United States and China have agreed on a “very substantial framework” to prevent Washington from imposing 100 per cent tariffs on Chinese goods. The deal also includes China’s decision to defer its new export controls on rare earth minerals, US Treasury Secretary Scott Bessent said on Sunday.

He made the announcement after two days of high-level talks in Malaysia, which helped ease tensions between the two largest economies. The discussions come ahead of a crucial meeting between President Donald Trump and Chinese President Xi Jinping next week.

Trade Breakthrough After Malaysia Talks

Bessent confirmed that the US expects China to resume large-scale soybean purchases within the next few years. He also said Beijing had agreed to delay its rare earth licensing rules by one year.

Speaking to NBC’s Meet the Press, Bessent said China was “ready to make a deal” after the negotiations in Kuala Lumpur. He explained that the new framework will pave the way for the Trump–Xi meeting, aimed at stopping the 100 per cent tariffs Trump had threatened to impose on November 1.

“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, noting the positive outcome of the talks.

Rare Earths at the Heart of the Dispute

China dominates the global supply of rare earth minerals, which are vital for electronics and defense technology. Washington had raised concerns that Beijing’s proposed export curbs could threaten critical US supply chains.

Bessent credited President Trump’s tariff threats for creating leverage in the negotiations. “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,” he said.

Trump’s Asia Tour and Future Plans

President Trump arrived in Malaysia on Sunday for the ASEAN Summit, the first stop of his five-day Asia tour. The trip is expected to end with his face-to-face meeting with Xi in South Korea on Thursday.

Bessent added that Trump may travel to Beijing early next year before the Lunar New Year on February 17. A follow-up meeting in Washington is also planned before Xi’s expected visit to the United States for the G20 summit next autumn.

Fentanyl and Trade Truce in Focus

Trump has made it clear that fentanyl production and exports will be a key issue during his discussions with Xi. The US continues to accuse China of not doing enough to stop the export of chemicals used to make the deadly opioid.

After the Kuala Lumpur talks, China’s chief trade envoy Li Chenggang said both countries had reached a preliminary consensus to extend their trade truce. They also agreed to address issues related to fentanyl and export controls. Li and Vice Premier He Lifeng represented China, while Bessent and US Trade Representative Jamieson Greer led the American side.

Optimism Ahead of Trump–Xi Meeting

President Trump expressed confidence about reaching a broader deal with China. “I think we’re going to have a deal with China,” he said, hinting at further discussions with Xi in both Beijing and Washington in the coming months.