U.S. And China Say A Trade Deal Is Drawing Closer As Trump And Xi Ready For A High-Stakes Meeting

KUALA LUMPUR, Malaysia (AP) — A trade agreement Officials stated that the USA and China are getting closer the world’s two largest economies He said they reached initial consensus on Sunday President Donald Trump and Chinese leader Xi Jinping Aiming to conclude during high risk meeting.

Any agreement would be a relief for international markets, even if it did not address fundamental issues such as production imbalances and access to technology. cutting edge computer chips.

Beijing recently limited its exports rare earth elements These are necessary for advanced technologies, to which Trump responded: Threatening with additional tariffs About Chinese products. The possibility of a widening conflict is at risk Weakening economic growth worldwide.

China’s chief trade negotiator Li Chenggang told reporters the two sides had reached a “preliminary consensus,” while Trump’s treasury secretary Scott Bessent said there was a “very successful framework.”

Trump also expressed confidence that a deal was close, saying the Chinese “want to make a deal and we want to make a deal.” The Republican president is set to meet Xi in South Korea on Thursday, the last stop of his Asia trip.

The threat of additional tariffs against China is “effectively off the table,” Bessent said on CBS’ “Face the Nation.” In interviews with various American news programs, he said talks with China had yielded initial agreements to stop fentanyl precursor chemicals from entering the United States and that Beijing would make “significant” purchases of soybeans and other agricultural products while postponing export controls on rare earths.

Asked how close he was to a deal, Trump’s trade representative, Jamieson Greer, said on Fox News Sunday that “it’s really going to be up to the two presidents.”

Trump, meanwhile, reiterated that he plans to visit China in the future and suggested Xi could come to Washington or Trump’s private club, Mar-a-Lago, in Florida.

Progress towards a potential agreement was made during the annual summit. Association of Southeast Asian NationsTrump is in Kuala Lumpur trying to burnish his reputation as an international dealmaker.

But the way the agreements were followed led to serious disruptions at home and abroad. While import duties complicate relations with trading partners, US government shutdown He began to quarrel with the Democrats.

At the summit, Thailand and Cambodia signed an extended ceasefire agreement at a ceremony attended by Trump. Threats of economic pressure encouraged the two countries to halt fighting along their disputed border earlier this year.

Under the first phase of the agreement, Thailand will release Cambodian prisoners and Cambodia will begin to withdraw its heavy weapons. Regional observers will monitor the situation to ensure hostilities do not restart.

“We did something that many people said couldn’t be done,” Trump said. Cambodian Prime Minister Hun Manet called it a “historic day” and Thai Prime Minister Anutin Charnvirakul said the agreement created the “building blocks of a lasting peace”.

The President signed economic frameworks with Cambodia, Thailand, and Malaysia; some of these were aimed at increasing trade involving critical minerals. The United States wants to rely less on China, which uses limited exports of key components in technology production as a bargaining chip in trade negotiations.

“It’s very important that we collaborate with each other as willing partners to ensure that we can have seamless supply chains, secure supply chains for quality of life, for our people and for safety,” Greer said.

Trump attended this summit only once in his first term, and US Secretary of Defense Pete Hegseth looked foreign with ASEAN during its ratification hearing in January.

This year’s event was a chance for Trump to reconnect with countries that have a combined economy of $3.8 trillion and 680 million people.

“The United States is with you 100 percent, and we aim to be a strong partner and friend for generations to come,” Trump said. He described his counterparts as “magnificent leaders” and said “everything you touch turns to gold”.

Trump’s tariff threats were thought to have helped spur talks on Thailand and Cambodia. Some of the worst modern clashes between the two countries took place over five days in July, leaving dozens dead and hundreds of thousands displaced.

At the time, the president threatened to suspend trade agreements unless the fighting stopped. A shaky ceasefire it has continued ever since.

Malaysian Prime Minister Anwar Ibrahim He praised the agreement between Thailand and Cambodia at the summit, saying “this reminds us that compromise is not a compromise, but an act of courage.”

Trump met with Brazilian President Luiz Inácio Lula da Silva, who attended the summit, in Kuala Lumpur. There has been friction between them over Brazil’s investigation into Jair Bolsonaro, the country’s former president and close Trump ally. Bolsonaro was convicted last month of trying to overturn the election results in his country.

During the meeting, Trump said he could reduce tariffs on Brazil. He made an attempt to show tolerance towards Bolsonaro.

“I think we should be able to make good deals for both countries,” he said.

While Trump warmed to Lula, he stayed away from Canadian Prime Minister Mark Carney. The president, angry at Canada for a television ad protesting its trade policies, made the announcement on social media on the way to the summit. Increase tariffs in Canada For this reason.

One of the leaders who was not present at the summit was Indian Prime Minister Narendra Modi. Although he was close to Trump during his first term, relations have become more tense recently. Trump sparks discomfort by boasting he got a deal done Latest conflict between India and Pakistanand there is Customs duties increased for India To buy Russian oil.

Associated Press writers Josh Boak in Tokyo and Jintamas Saksornchai in Bangkok contributed to this report.