Trump says he expects to reach deal with China on trade, soybeans, possibly nuclear arms
By Jeff Mason, Andrea Shalal and David Lawder
WASHINGTON (Reuters) – U.S. President Donald Trump said on Wednesday he expects to reach agreements with Chinese President Xi Jinping at their meeting in South Korea next week, ranging from Beijing’s renewed soybean purchases to nuclear weapons limitations.
Trump told reporters in the Oval Office that he planned to discuss China’s purchase of Russian oil and how to stop Russia’s war in Ukraine, which is in its third year.
“I think we’ll make a deal,” Trump told reporters during his meeting with NATO Secretary General Mark Rutte, adding that he believed Xi had changed his mind on the war in Ukraine and would be open to a discussion on ending the war.
“I’m not sure it was at first, but now he wants the war to end,” he said.
Trump’s comments contrasted with harsher statements from his chief trade negotiator and finance chief, who traveled to Asia on Wednesday to keep his meeting with Xi, the first of Trump’s second term, on track.
The US president downplayed the significance of China’s restrictions on exports of rare earth magnets that have roiled markets, calling it an “inconvenience” and describing tariffs as a “more potent” problem.
Under pressure from US farmers reeling from a massive drop in Chinese soybean orders, Trump said he expected to reach an agreement on the issue with Xi.
A deal was also possible on nuclear arms, he said, noting that Russian President Vladimir Putin had raised the prospect of a bilateral de-escalation of nuclear weapons, and China could be added to that effort.
Trade tensions between the United States and China, the world’s two largest economies, have flared up in recent weeks after months of relative calm. Trump imposed 100% additional tariffs on China, which will take effect on November 1, after China announced export controls on almost all rare earth elements.
SENIOR US OFFICIALS GO TO ASIA
While US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer traveled to Malaysia to ease tensions over Beijing’s rare earth export restrictions, officials in Washington were preparing to hit Beijing with new measures if no deal was reached.
Reuters had previously reported that the Trump administration was considering a plan to restrict a wide range of software-enabled exports to China, from laptops to jet engines, to retaliate against Beijing after Trump threatened to ban “critical software” exports to China earlier this month.
Bessent said Greer was already en route to Kuala Lumpur and would arrive there Wednesday before joining Trump for the remainder of his Asia trip.
Speaking to Fox Business Network’s “Kudlow” program, Bessent said, “This is China’s fight against the world. This is not just in the United States.” “This licensing regime they are proposing is unworkable and unacceptable.”
He said the United States and its Western allies were considering how to respond if they could not negotiate a pause or other relief in Beijing’s plans, but did not provide details.
“I hope we can resolve this this weekend so leaders can enter the talks on a more positive note,” he said. Bessent described the planned Trump-Xi meeting as a “stepping aside” that could be an attempt to dampen expectations.
Trump is scheduled to travel to Kuala Lumpur for the Association of Southeast Asian Nations meeting, which begins Sunday, and is expected to be in South Korea later that week ahead of the leaders’ summit of the Asia-Pacific Economic Cooperation forum to be held in Gyeongju from October 31 to November 1.
Bessent said that Trump will also visit Japan to meet with the new prime minister, Sanae Takaichi.
The US Treasury Secretary stated that he is optimistic that the two-day “shattering” talks with Chinese officials will pave the way for a good meeting between the two leaders, and stated that Trump has great respect for Xi.
GREER SAYS CHINA VIOLATES COMMITMENTS
Washington also announced sweeping new sanctions against two Russian oil companies but stopped short of imposing tariffs on China, one of the biggest buyers of Russian oil, as it did on India, another major buyer.
Greer and Bessent have emphasized that they do not want to break away from China or escalate the situation, but insist that the United States must rebalance trade with China after decades of very limited access to Chinese markets.
Trump has sent conflicting signals about the Xi meeting in recent days, telling reporters on Tuesday it might not happen.
Greer told CNBC’s “Squawk Box” that China’s rare earth measures violate its officials’ commitment months ago to continue supplying rare earths needed for high technology, but the U.S. and China could find a new balance for trade in non-sensitive goods. He also noted that China has unfulfilled obligations to purchase agricultural and manufactured goods from the United States under the trade agreement signed during Trump’s first term as president.
“The US has always been pretty open to the Chinese, and that’s actually driven by Chinese policies that exclude US companies and lead to overcapacity and overproduction in China. None of that works for the US,” he said. “We can’t live this way anymore, so we need an alternative way.”
(Reporting by Andrea Shalal and Susan Heavey; Additional reporting by Trevor Hunnicutt; Editing by Andrew Heavens, Sharon Singleton, Andrea Ricci and Nia Williams)
