Photo: Alamy
President Donald Trump said he expects to reach a trade deal with China during his upcoming meeting with Chinese President Xi Jinping in South Korea this week.
“I’ve got a lot of respect for President Xi and I think we’re going to come away with a deal,” Trump told reporters on Air Force One while traveling to Japan from Malaysia. “We have China coming and it’s going to be very interesting.”
Officials from both countries said Sunday they reached an initial understanding on elements that could serve as the basis for a final agreement. China’s top trade negotiator, Li Chenggang, said the sides have a “preliminary consensus,” while U.S. Treasury Secretary Scott Bessent described talks as having produced “a very successful framework.”
Trump echoed that optimism, telling reporters the Chinese “want to make a deal and we want to make a deal.” He is expected to meet Xi in South Korea on Thursday, the final stop of his Asia trip.
A deal would likely reassure global markets after months of escalating friction. Beijing recently restricted exports of rare earth materials used in advanced technologies, and Trump threatened additional tariffs on Chinese goods, fueling concerns about a widening dispute that could slow global growth.
Bessent told CBS’ “Face the Nation” that the threat of further tariff hikes was “effectively off the table.” He said discussions produced initial agreements for China to curb shipments of fentanyl precursors to the U.S., increase purchases of soybeans and other agricultural goods, and delay new export controls on rare earths.
Talks took place during the Association of Southeast Asian Nations summit in Kuala Lumpur, where Trump highlighted his role as a dealmaker. The president also oversaw the signing of a ceasefire agreement between Thailand and Cambodia, ending border clashes that flared earlier this year.
“We did something that a lot of people said couldn’t be done,” President Trump said. Cambodian Prime Minister Hun Manet called the agreement a “historic day,” and Thai Prime Minister Anutin Charnvirakul said it creates “the building blocks for a lasting peace.”
The U.S. signed several economic frameworks with regional partners to strengthen supply chains for critical minerals and reduce reliance on China.
