Besant "Established a successful framework"…US·China 'Rare earths·Agricultural products' negotiations conclude [APEC 2025]

Malaysia: US Besant - China He Lifeng 5th Trade Negotiation

Possibility of US·China trade agreement in Korea

US "Reprieve on rare earths controls·Benefits for farmers"

China "US stance tough, tense discussion

Preliminary agreement…awaiting each side's approval"

Agreed agenda paves way for summit preparations

Trump "They will make concessions, and so will we"

U.S. Treasury Secretary Scott Besant said on the 26th that after two days of trade talks with the Chinese delegation in Malaysia, they had "agreed on a very successful basic framework for a US-China summit." There is speculation that President Donald Trump and Chinese President Xi Jinping could reach a final agreement on US-China trade negotiations when they meet at the Asia-Pacific Economic Cooperation (APEC) leaders' meeting in Korea on the 30th.

The Chinese delegation, which included Vice Premier He Lifeng, Li Chenggang, Director-General for International Trade Negotiations at the Ministry of Commerce and Vice Minister, and Liao Min, Vice Minister of Finance, concluded the fifth high-level trade talks in Kuala Lumpur, Malaysia, after two days with the US delegation led by Treasury Secretary Besant and USTR representative Jamieson Greer.

According to China’s Xinhua News Agency, the two countries discussed the US's Section 301 measures on China's maritime, logistics, and shipbuilding sectors, extension of a mutual tariff suspension period, fentanyl tariffs and law enforcement cooperation, agricultural trade, export control issues, and more. Xinhua reported that "the two sides agreed to further finalize specific details and to carry out their respective domestic approval procedures."

Secretary Besant emphasized in an interview with reporters that the US and China had "reached a very substantive framework." Regarding China’s rare earths regulations, he predicted "(China) will provide a sort of reprieve." China’s Ministry of Commerce significantly strengthened export controls on related technologies such as rare earths and permanent magnets on the 9th. With President Trump threatening to impose an additional 100% tariff, the tariff truce between the two sides has been precarious. Secretary Besant said the framework also "includes benefits for American farmers." China is currently suspending imports of US soybeans.

However, final deals between the two sides have not been concluded. Chinese representative Vice Minister Li said that "the agenda of discussions between the two countries ranged widely from export controls to extension of a trade war truce, fentanyl, trade expansion, and US controls on China's shipbuilding industry," and suggested that there were considerable differences between the two sides by saying, "The US stance was tough, and China's defense of its interests was firm."

Vice Minister Li said, "After more than a day of very tense discussions, China and the US constructively discussed ways to appropriately address some of each other's concerns on these agenda items and reached a preliminary agreement," and "The next step will be for each to carry out internal reporting and approval procedures."

Since April, exchanging high tariffs and trade control measures, the US and China have held high-level trade talks, changing venues to Geneva in Switzerland (May), London in the UK (June), Stockholm in Sweden (July), and Madrid in Spain (September) to discuss issues. This fifth high-level trade talk, held over two days on the 25th and that day, served as a "prelude" to the Trump-Xi summit in Busan to be held on the 30th on the sidelines of the APEC leaders' meeting.

President Trump told reporters aboard Air Force One en route to Malaysia to attend the ASEAN summit that "there's a lot to discuss (with Chairman Xi). There are various trade agreements made in the past; some were torn up and some weren't, so there's a lot to discuss," expressing optimism by saying, "I think it will be a good meeting." He added, "They (China) will have to give concessions. I expect we will, too."

Reporter Kim Dong-hyun / Beijing = Correspondent Kim Eun-jung 3code@hankyung.com