The United States and China have reached a "preliminary consensus" in Malaysia to resolve their trade disputes, one of China's top negotiators said in Kuala Lumpur today, days ahead of an expected meeting between the presidents of the two countries, Donald Trump and Xi Jinping.
"China and the United States have constructively explored appropriate solutions to issues of concern to both sides and reached a preliminary consensus," Li Chenggang, China's international trade representative and vice commerce minister, told reporters after two days of bilateral talks in the Malaysian capital.
The talks followed China's decision to impose restrictions on exports of rare earth minerals needed for modern technologies and US President Donald Trump's threat to impose additional 100 percent tariffs on Chinese goods. Their trade conflict has threatened to weaken economic growth around the world.
US Treasury Secretary Scott Besant, who participated in economic talks in Kuala Lumpur, announced today that China plans to postpone the implementation of restrictions on the export of rare earth minerals and to resume purchasing American soybeans, thus avoiding a huge increase in US tariffs on its exports to the US.
Trump has threatened to impose additional tariffs on China starting November 1.
Besant, in a statement to the ABC program today, said he thought they "got away with it."
"China will postpone it for a year while it reviews the situation," Besant said, adding that Beijing also agreed to "substantial agricultural purchases from American farmers" during talks with Vice Premier He Lifeng.
Besent said earlier today that talks with Chinese Vice Premier He Lieng in Kuala Lumpur had enabled the preparation of the meeting of their leaders "in a very positive context."
Trump also expressed confidence that an agreement is close.
"They want to make a deal and we want to make a deal," Trump said.
The announcement was made at the annual summit of the Association of Southeast Asian Nations (Asean) held in Kuala Lumpur, which Trump is also attending.
The highlight of Trump's Asian tour is set to be a meeting in Seoul on Thursday with Chinese President Xi Jinping, who will attend the Asia-Pacific Economic Cooperation (APEC) summit in that city.
"I think we're going to make a good deal with China," Trump told reporters.
Bonus video:
