Trump and China’s Xi Near Trade Deal Agreement Before Key Summit/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. and China say a trade deal is nearing as Presidents Trump and Xi prepare to meet in South Korea. The announcement followed successful discussions during the ASEAN summit in Malaysia. Trump also helped broker a ceasefire between Thailand and Cambodia while signaling broader trade ambitions across Asia.
U.S.-China Trade Talks: Quick Looks
- Preliminary trade deal in progress: U.S. and Chinese negotiators reached an initial consensus for a broader agreement.
- Trump and Xi set to meet: A final trade pact could emerge from their Thursday summit in South Korea.
- Fentanyl and agriculture included: China agrees to limit precursor chemicals and increase agricultural imports.
- Tariffs may be lifted: Trump’s team says threats of new tariffs on Chinese goods are now paused.
- Rare earth restrictions addressed: China delays new export controls amid deal progress.
- Thailand-Cambodia ceasefire signed: Trump attends and celebrates expanded peace accord.
- Regional economic deals signed: U.S. signs frameworks with Cambodia, Thailand, and Malaysia.
- Trump seeks regional influence: Uses summit to re-engage with Southeast Asia’s $3.8 trillion economy.
Trump and China’s Xi Near Trade Deal Agreement Before Key Summit
Deep Look
KUALA LUMPUR, Malaysia — The United States and China are nearing a long-awaited trade agreement, officials from both governments confirmed Sunday. This breakthrough arrives just ahead of a critical meeting between President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday in South Korea.
The preliminary framework, which stops short of resolving long-term issues such as supply chain control and intellectual property disputes, is nonetheless being welcomed as a sign of stability in a global economy rattled by tariffs and technology wars.
Trump, speaking from Kuala Lumpur during the ASEAN summit, said he is confident a deal is close. “The Chinese want to make a deal, and we want to make a deal,” he said, signaling optimism that the two leaders could finalize terms during their face-to-face discussions.
Rare Earths, Fentanyl, and Agriculture on the Table
Treasury Secretary Scott Bessent detailed the agreement’s early contours, stating that China has committed to halting the export of fentanyl precursors to the U.S. and to buying significant quantities of American agricultural products, including soybeans. Additionally, Beijing has agreed to temporarily pause the implementation of export restrictions on rare earth minerals.
“The threat of new tariffs is effectively off the table,” Bessent said on American television over the weekend. He framed the progress as a significant step toward resolving a standoff that has impacted supply chains and rattled global markets.
Trump’s trade representative Jamieson Greer said the final outcome will depend on how negotiations go during the summit, noting that while progress has been substantial, “it’s really going to depend on the two presidents.”
A Pivot to Southeast Asia
The tentative trade agreement is only part of Trump’s strategy during his latest Asia tour. At the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, Trump took the opportunity to rebuild relationships with regional partners.
The president participated in a landmark ceasefire ceremony between Thailand and Cambodia, following months of escalating border violence. Under the new agreement, Cambodia will begin withdrawing heavy weapons, and Thailand will release Cambodian detainees. Trump praised the deal as a “historic breakthrough.”
Regional observers will oversee the truce to prevent renewed conflict. Leaders from both nations credited Trump’s pressure and engagement with pushing them toward the agreement.
“Some said it couldn’t be done,” Trump declared. Cambodian Prime Minister Hun Manet and Thai Prime Minister Anutin Charnvirakul echoed the sentiment, calling the deal a building block for long-term regional peace.
Economic Agreements and Mineral Supply Chains
In addition to ceasefire diplomacy, Trump signed economic agreements with Thailand, Cambodia, and Malaysia. These deals focus on boosting trade and securing access to critical minerals essential for technology manufacturing. The U.S. has been actively trying to reduce its reliance on China for such resources.
“It’s vital we build secure supply chains together,” said Greer. “It’s about quality of life, economic security, and strategic independence.”
The agreements reflect Washington’s broader pivot to Southeast Asia — a region with a combined population of 680 million and a $3.8 trillion economy.
Diplomacy and Contention at the Summit
Trump’s return to the ASEAN summit—his first since early in his initial term—marks a renewed diplomatic effort to engage with a key part of the world. The president was effusive in his praise of ASEAN leaders, calling them “spectacular” and suggesting their economic progress is golden.
However, Trump’s trip was not without friction. He met with Brazilian President Luiz Inácio Lula da Silva, despite tensions over the prosecution of former Brazilian president Jair Bolsonaro, a close Trump ally. Trump hinted at tariff relief for Brazil, signaling a willingness to negotiate.
Meanwhile, Trump avoided Canadian Prime Minister Mark Carney, who has drawn his ire for supporting an ad campaign critical of U.S. trade policies. Trump even announced increased tariffs on Canada as retaliation during his journey to Malaysia.
Indian Prime Minister Narendra Modi was notably absent from the summit. Once a Trump ally, Modi has faced increased tariffs from the U.S. and tension over Trump’s claims about mediating between India and Pakistan.
Looking Ahead to the Trump-Xi Summit
With trade tensions slightly cooled and preliminary consensus established, the world now turns its attention to Thursday’s summit between Trump and Xi in South Korea.
Trump suggested he could soon visit China or host Xi at Mar-a-Lago, underscoring his desire to shape the narrative as a global dealmaker.
A completed trade agreement would offer a rare foreign policy win for the Trump administration amid domestic challenges, including a prolonged government shutdown and friction with Congress over defense spending.
The path ahead remains uncertain, but both sides appear motivated to reach a conclusion that avoids economic escalation.
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