China and the United States have reached a “basic consensus” on addressing their respective trade concerns following two days of discussions in Kuala Lumpur, Chinese Vice Premier He Lifeng said on Sunday.
He Lifeng met with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer over the weekend on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur.
He described the talks as “candid, in-depth, and constructive,” adding that both sides discussed a wide range of issues including tariffs, export controls, agricultural trade, and cooperation on fentanyl-related enforcement.
He Lifeng emphasised that the essence of China-US economic relations lies in “mutual benefit and win-win results,” stating that “both countries gain from cooperation and lose from confrontation.”
The meeting followed the consensus reached earlier this year between Chinese President Xi Jinping and US President Donald Trump during their phone conversations.
Following the talks, Bessent told that Trump’s threat to impose an additional 100% tariff on Chinese goods “has gone away.”
The proposed tariff hike had been part of Trump’s response to Beijing’s expanded export controls on rare earth materials, which are critical for global industries such as electronics and defence.
“We had a very good two-day meeting,” Bessent said. “I would believe that the so it would be an extra 100% from where we are now, and I believe that that is effectively off the table.”
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He added, “I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.”
Both sides are now focused on preventing any escalation in their trade tensions, which had flared earlier this month. Trump’s tariff threats were initially scheduled to take effect on November 1.
Trump arrived in Malaysia on Sunday for the ASEAN summit, marking the first stop of his five-day Asia tour that will conclude with a meeting with Xi Jinping in South Korea on October 30.
Speaking to reporters, Trump expressed optimism, saying, “I think we’re going to have a deal with China.”
The latest round of talks comes amid growing concerns over China’s new export controls on rare earth magnets and minerals, which have led to shortages worldwide.
The two nations have also imposed sanctions and curbs on each other’s industries in recent months, despite earlier truces reached in Geneva in May and extended in August.
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