As tensions between the United States and China continue to rise, US President Donald Trump is optimistic about reaching a trade deal with Chinese President Xi Jinping during their upcoming meeting in South Korea. Following talks between economic officials at the ASEAN Summit in Kuala Lumpur, both sides appear hopeful for a resolution that could ease ongoing trade hostilities.
The ASEAN Summit Negotiations
Trump’s recent discussions with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, along with Chinese Vice Premier He Lifeng and trade negotiator Li Chenggang, yielded a preliminary consensus on several key issues.
- Exports and Tariffs: There’s a potential agreement to defer China’s planned expansion of export controls on rare earth minerals.
- Avoiding New Tariffs: This includes averting a new 100% US tariff on Chinese goods, a measure Trump had threatened previously.
- Agricultural Purchases: Discussions also encompassed increasing Chinese purchases of US soybeans and balancing trade.
- Fentanyl Crisis: Aiming to resolve concerns surrounding the US fentanyl crisis was also a focal point of the negotiations.
According to Bessent, the outcome could extend the current truce set to expire on 10 November 2024, which had momentarily alleviated the trade war’s pressure since its initiation in May 2024.
Looking Ahead to Xi Meeting
As Trump prepares for his face-to-face meeting with Xi on 30 October, he expressed determination to make progress: “I think we’re going to have a deal with China.” Both leaders will discuss not only trade issues but also international relations, including China’s stance on Taiwan and the ongoing situation in Ukraine.
Regional Reactions and Implications
The implications of these negotiations extend beyond just the US and China. With Japan’s new Prime Minister Sanae Takaichi prioritising the US-Japan alliance, and potential collaborations with other ASEAN nations, the landscape is set for a transformative shift in regional trade dynamics.
As Trump wraps up his Asia tour, focusing on consolidating alliances and strengthening economic ties with Southeast Asian nations, all eyes will be on his meeting with Xi to see if a trade breakthrough can truly be achieved.