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U.S. President Donald Trump expressed optimism about the possibility of reaching a trade agreement with China, after senior economic officials from both countries made tangible progress during trade talks on the sidelines of the ASEAN summit in Kuala Lumpur.

Participating in the talks were U.S. Treasury Secretary Scott Pruitt and U.S. Trade Representative Jamison Greer, along with Chinese Vice Premier He Lifeng and Chinese chief negotiator Li Chenggang. Officials confirmed that the discussions resulted in an initial consensus on a range of issues, including trade, rare earth minerals, combating fentanyl trafficking, and TikTok.

U.S. Treasury Secretary Scott Pruitt noted that the agreement could lead to China postponing restrictions on rare earth mineral exports and avoiding U.S. tariffs of up to 100% on Chinese goods.

Key Issues on the Negotiation Table

The discussions at the leaders' level are expected to address topics including:

• Enhancing China's purchase of U.S. soybean crops.
• Achieving a better trade balance between the two countries.
• Cooperation in combating the fentanyl trafficking crisis.
• Discussing human rights issues in Hong Kong and the Taiwan issue.
• Coordinating on the Russia-Ukraine crisis.

China and the United States' Position

Despite the White House officially announcing the Trump-Xi meeting, Beijing has not yet confirmed the date. Trump later indicated the possibility of continuing meetings in China or the United States, whether in Washington or Mar-a-Lago.

These talks come amid increasing tensions in trade relations, following China's new restrictions on rare earth mineral exports and Washington opening investigations into compliance with the phase one trade agreement signed in 2020. The trade volume between the two countries is estimated at around $660 billion annually.

Analysts believe that the current agreement may be fragile and requires internal approval from both sides, but it represents an important step toward avoiding the escalation of a new trade war. Officials confirmed that the discussions were candid and constructive, focusing on compromises to ensure the interests of both parties and the stability of international trade relations.