KUALA LUMPUR, Malaysia — The United States and China are edging closer to a new trade deal after officials from both countries announced Sunday that they had reached an initial consensus. President Donald Trump and Chinese President Xi Jinping are now expected to finalize the agreement during their upcoming high-stakes meeting.
The potential deal is seen as a positive sign for global markets, even though it may not resolve deeper issues such as manufacturing imbalances and access to advanced computer chips. Tensions had recently escalated after Beijing restricted exports of rare earth elements essential for modern technologies, prompting Trump to threaten additional tariffs on Chinese goods. Economists warned that the dispute could slow global economic growth if it continued.
China’s lead trade negotiator, Li Chenggang, said the two countries had reached a “preliminary consensus,” while U.S. Treasury Secretary Scott Bessent described the progress as “a very successful framework.” Trump also voiced optimism, saying both sides were eager to close the deal. The two leaders are scheduled to meet Thursday in South Korea, the final stop on Trump’s Asia tour. He also said China plans to make “substantial” purchases of soybeans and other U.S. agricultural products, while delaying its export controls on rare earth materials.
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