US-China trade talks: Scott Bessent says ‘substantial framework’ reached; 100% tariffs, rare earth export clash averted

US treasury secretary Scott Bessent said on Sunday that Washington and Beijing have reached a “very substantial framework” that would prevent the US from imposing 100% tariffs on Chinese goods and allow for a deferral of China’s rare earths export controls, as per news agency Reuters. The development follows high-level talks in Kuala Lumpur, Malaysia, ahead of a scheduled meeting between President Donald Trump and Chinese President Xi Jinping next week.Bessent told NBC’s “Meet the Press” that the framework will enable discussions on more balanced US-China trade, Chinese purchases of American soybeans and other agricultural products, and measures to address the US fentanyl crisis. “No, I’m not [anticipating the 100% tariffs], and I’m also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed,” he said. Final terms are expected to be decided by Trump and Xi, he added.The talks come as tensions have escalated in recent weeks. Trump had threatened new triple-digit tariffs starting on November 1 in response to China’s expanded controls on rare earth magnets and minerals. The US and China previously rolled back most of their tariffs under a trade truce signed in May, which is due to expire on November 10. Bessent said the truce could be extended pending the president’s decision.Economic officials from both countries, including China’s Vice Premier He Lifeng and top trade negotiator Li Chenggang, held discussions with Bessent and US trade representative Jamieson Greer on the sidelines of the Asean summit. Li said a preliminary consensus was reached on a range of issues, including the extension of the trade truce, fentanyl and export controls, though he did not provide specific details.Trump, who arrived in Malaysia on Sunday for the Asean summit, expressed confidence about a deal. “I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters, while Trump said, “I think we’re going to have a deal with China”, according to Reuters. The US president also indicated the possibility of additional meetings with Xi in China and the United States.The framework aims to de-escalate the fragile trade war, which has involved repeated sanctions, export curbs, and threats of retaliatory measures. Among the key issues on the agenda for Trump-Xi talks are Chinese purchases of US soybeans, Taiwan, and the release of jailed Hong Kong media tycoon Jimmy Lai. The rare earth export controls have caused global supply concerns, prompting Washington to consider restrictions on software-powered exports to China, including laptops and jet engines.The outcome of the Kuala Lumpur talks is expected to clear the way for Trump and Xi to meet next week in South Korea, though Beijing has yet to officially confirm the face-to-face summit.