After US-China Malaysia Trade Talks, Here’s What We Know So Far

The two-day U.S.–China trade talks in Malaysia have concluded. After combining information from both sides, here are some key takeaways so far:

1/ The discussions covered:

• U.S. Section 301 measures on China’s maritime logistics and shipbuilding sectors;

• extending the reciprocal tariff suspension period;

• fentanyl-related tariffs and law-enforcement cooperation; agricultural trade (soybeans);

• export controls (the 50% rule and rare earths?);

• TikTok

2/ Another framework has emerged:

• Chinese side: “The two sides had a constructive exchange on properly addressing each other’s concerns and reached an initial consensus. The next step is for each side to complete its respective internal approval procedures.”

• U.S. side: The talks “discussed some new details” and produced “a very successful framework for the leaders to discuss.”

3/ The trade truce will continue to be extended — pending final confirmation from Trump.

4/ A preliminary agreement appears to have been reached on soybean purchases, though it still requires confirmation from both leaders. Bessent told NBC that Trump and Xi will be able to discuss substantial Chinese purchases of U.S. soybeans.

5/ the U.S. will be able to get a deferral on China’s rare earth restrictions, with Trump and Xi making the final decisions. In return, the US will again extend the trade truce with China, and avert the 100% tariff, according to Bessent’s interview with NBC. Bessent later told NBC News that Trump would most likely visit Xi in Beijing early next year, just ahead of the Lunar New Year, which is Feb. 17. He said a meeting in Washington would most likely happen ahead of Xi’s planned trip to the U.S. next fall for the Group of 20 summit. Bessent also emphasised that there had been no changes in US export control policies.

6/ Characterizations of the meeting:

• U.S. side: constructive, far-reaching, and substantive

• Chinese side: candid, in-depth, and constructive.

• Li Chenggang: the U.S. side took a firm stance, while the Chinese side was resolute in safeguarding its interests.

Let me share my personal impression. I think this round of talks seemed to be quite tough — both sides were firm and confrontational. They exchanged several compromise proposals — ideas on where each side might make concessions or trade benefits — but didn’t finalize which one to adopt. In other words, no deal was reached.

Now, both sides will take these proposals back home for internal discussions at the leadership level to decide which plan could be mutually acceptable and approved. That’s normal. Each delegation was clearly given a certain mandate before the trip, but not necessarily the authority to make final decisions.

Under one potential arrangement, China would agree to purchase a certain amount of U.S. soybeans and step up anti-narcotics cooperation to help the U.S. get the fentanyl issue under control. In return, China would delay the implementation of its rare earth FDPR for one year, while the U.S. would extend the reciprocal tariff suspension — and, in the best-case scenario for China, lift the fentanyl-related tariffs altogether (which seems to be very difficult so far).

But on issues that China is particularly concerned about — such as U.S. export controls on China (for example, the 50% rule) and the reduction of barriers to Chinese investment in the United States, which Beijing raised during the Madrid talks — the U.S. side doesn’t seem to have made any concessions. Interestingly, neither side brought up the latter issue this time.

U.S. statement:

Greer was the first to make brief remarks following the talks. Afterwards, Treasury Secretary Bessent took questions from reporters outside the venue.

Scott Bessent

Bessent : Good afternoon, everyone. Good to be here. And follow up for. Looking forward to seeing the president. There are a few minutes. Do we have a treat right here?

Reporter: Could you please give us an update on another concept included? Just give us a quick update.

Bessent: Yeah, I think we have a very successful framework for the leaders to discuss on Thursday. We discuss the trade, rare earth, fentanyl, TikTok, and the overall relationship between the two countries.

Reporter: Is there any differences from previous round talking any pre differences or breakthroughs from the the previous one?

Bessent: Well, I’m not gonna get ahead of the president, but I think we have some, the very substantial negotiations here and there will be some new nuance.

Reporter: Secretary, will the trade truce be extended?

Bessent: Again, they’re coming out of this meeting. I would say yes. But that is, at the end of the day, President Trump’s decision for the right inspiration right here.

Reporter: Any agreement with soybeans?

Bessent: Yes, we’ve had a significant discussions on ag purchases and I’m looking forward to the two leaders confirming that.

Reporter: Can you just give us a sense of the atmospherics in the bring, the mood between you and the Chinese negotiators?

Bessent: Yes, this is the fifth time that the vice premier of He Lifeng and I is see each other with great respect. And I think what was different this time is this was in preparation for the meeting with the two leaders. So we were determined to provide them for a framework for a successful meeting in Korea, which I think it will be.

Reporter: Ambassador Jamieson Greer describe the meeting as a perspective. How much we describe the meeting?

Bessent: And I would describe it as constructive, far reaching, a thin depth and a giving us the ability move forward and set the stage for the leader’s meeting in a very positive framework.

Jamieson Greer:

Reporter: Any progress in trade talks?

Greer: We spent a lot of time last night, spent a lot of time this morning, talked about a potential framework moving forward. I think we’re moving forward to the final details of the type of agreement that the leaders can review and decide if they want to conclude together.

As you know, President Xi and President Trump will be meeting later this week, had quite constructive discussions with our Chinese counterparts, and we think we’re getting to a point where we have something we can present to the leaders for their consideration.”

Reporter: Any progress on rare earth, and 90-day trade truce?

Greer: It was a broad discussion on all kinds of topics. We’ve been talking about the trade truce, and rare earth, of course, we talked about all important topics. And I think our work and results have given prospects for a very productive meeting for the two presidents next week.

Bessent’s interview with CBS News:

SEC. BESSENT: Margaret, I think we had a very good two day meeting. 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. I’m not going to get ahead of the two leaders who will be meeting in Korea on Thursday, but I can tell you we had a very good two days. So 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.

MARGARET BRENNAN: That export control on rare earths, which is used in all sorts of electronics and automobiles. That will be lifted?

SEC. BESSENT: Well, it was never imposed, so they threatened to impose it in December, and President Trump, to give me and the trade team leverage, decided that it would be a good idea for him to threaten a 100% additional tariff, and it did give us a great deal of leverage. President Trump’s very good at creating leverage for us. This is the fourth meeting- excuse me, the fifth meeting that we’ve had with the Chinese. My Chinese counterpart is the Vice Premier, He Lifeng, so we had a very good two days. We discussed a wide variety of issues, from the rare earth- from the rare earth magnets to trade, to substantial purchases of American agricultural products, to the Chinese helping us in this fentanyl crisis that we have in the US.

MARGARET BRENNAN: On the purchases of American goods. American farmers have been hit hard by China’s boycott of American soybeans that went into place after the tariff war began here. The administration is pumping at least $3 billion in financial aid to farmers to help make them whole, or at least offset the pain. Can farmers expect to sell their soybeans to China again and when?

SEC. BESSENT: Margaret, I’m not going to give you the details here, but I can tell you that the soybean farmers are going to be extremely happy with this deal for this year and for the coming years.

MARGARET BRENNAN: A few weeks ago, there was a photographer who snapped a photo of you texting with the agricultural Secretary about this. She indicated concern about the unintended damage to American farmers from the U.S. financial lifeline being given to Argentina because that country was able to sell more to China, that gave Beijing leverage over the United States. Is that leverage still a problem today?

SEC. BESSENT: Well, first- first of all, the text from Secretary Rollins was talking- talking about a purchase of soybeans that the Chinese did and Margaret, those soybeans were always going to get purchased. They just did it at a time when the Argentines had lifted their export taxes. So those- those soybeans, were always going to be on the market. It’s a global market. The three leading suppliers are Brazil, Argentina and the U.S. And I believe that we have brought the market back into equilibrium, and I believe that the Chinese will be making substantial purchases again.

MARGARET BRENNAN: So you dispute the idea that America hurt itself by giving this $20 billion lifeline to Argentina? Can you guarantee Americans, they’ll be made whole on that?

SEC. BESSENT: Margaret, I can tell you that the Exchange Stabilization Fund has never lost money. It will not lose money this time. And we are not giving money to Argentina. It is a swap line, which the U.S. has done many times in the past, and we’ve never lost money

MARGARET BRENNAN: On the Chinese, I saw that you mentioned TikTok was discussed. Are the details of the President’s Executive Order, released in September, are those finalized? Has China agreed to give up control of the algorithm that determines what users see?

SEC. BESSENT: Margaret, we reached a final deal on TikTok. We reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea.

MARGARET BRENNAN: Can you tell us any details of that transaction?

SEC. BESSENT: Margaret, I’m not part of the commercial side of the transaction. The- my, my remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days.

MARGARET BRENNAN: Over the past two days, did the U.S. make any concessions here beyond what we discussed with the tariffs? Are you dropping restrictions on exports of, for example, semiconductor chips, or restrictions on Chinese investment in the United States?

SEC. BESSENT: There have been no, no changes via- in our export controls.

MARGARET BRENNAN: When presidents Xi and Trump are able to speak on Thursday. Do you believe that the president’s position here, his ability to negotiate a deal with China, is going to be hurt by the fact that he’s been unable to get a deal here at home, to reopen the US government?

SEC. BESSENT: Well, look, I don’t think it’s going to, I don’t think it’s going to hurt. It’s a global embarrassment what these Democratic senators are doing, keep- keeping the government shut down. I mean, look at the numbers. It’s 52-3, 52 Republican senators, three Democratic senators have come across the line. So I just think it’s an embarrassment, doesn’t affect his ability on the international stage. Now what it does affect, it’s starting to affect the economy. It’s starting to slow down air traffic. And I would urge moderate Democrats to be heroes, come across the aisle, like they did in the spring, and pass a clean CR.

Bessent’s interview with ABC

Martha Raddatz:

I’m joined now by Treasury Secretary Scott Besson, who is traveling with the president in Malaysia. And, Mr Secretary, we know you have been meeting with the Chinese vice premier. President Trump will have a meeting with President Xi later this week. We have read this morning that you said there is a very successful framework in place now. Tell us about that place.

Bessent: Thank you, Martha. Good to be with you. So this was the fifth meeting that I’ve had with my Chinese counterpart, the vice premier, Heli Feng, and we covered a wide range of issues. And I think we’ve reached a substantial framework for the two leaders who will meet in Korea next Thursday.

So, you know, on the table, the president had given me maximum leverage when he threatened 100% tariffs if the Chinese impose their rare earth global export controls. So I think we have averted that. So the tariffs will be averted.

And we have a regular meeting, regular quarterly meeting with the Chinese. It was scheduled for November 10th or before November 10th. I don’t think we will have to have that. So we have been rolling the tariffs quarterly, so we agreed on that. We also agreed on substantial agriculture purchases for US farmers, we agree that the Chinese would begin to help us with the precursor chemicals for this terrible fentanyl epidemic that’s ravaging our country. So I would say that it was a very good meeting overall.

Martha Raddatz: And, of course, it’s up to President Trump. But what kind of concessions were made, especially on these rare earth minerals.

Bessent: I’m not sure what you meant is they had threatened to global export licensing regime, and I believe that they’re going to delay that for a year while they reexamine it.

Martha Raddatz: This will be the first time that President Trump has met President Xi. He says they have a very good relation. But we’ve also seen him say that about President Putin and it didn’t go so well. Why are you confident this will go better?

Bessent: Well, this isn’t the first time they met. This is the first time they met in his second term. And I think the purpose of the meeting for the past two days between myself and the vice Premier was to make sure that they have a successful meeting. And based on this substantial framework from the past two days, I think that this could be a, the fantastic meeting between the two leaders. And they do have a very good relationship. It’s based on mutual respect, where the two largest emies and the two most powerful countries in the world. I’ve been in the Oval when the president is on phone calls with President Xi and they show each other a great respect. They iron out their differences. And, but I think that we have managed to pre game a lot of that in advance here in Kuala Lumpur. And of course, the meeting on Thursday will be at the APEC summit in Korea.

Martha Raddatz: I did mean the second term. I know they have met before. The president has also said he does want our farmers to be taken care of. You did mention that China has been boycotting American soybeans and American farmers have really suffered. Do you see a real light at the end of the tunnel there? They may allow soybeans again.

Bessent: Well, Martha, in case you don’t know what, I’m actually a soybean farmer, so I have felt this pain too. And there are a couple of things happening here. One, the Chinese have substantially dropped their purchases to almost zero. So they unfortunately have been using American farmers who are amongst President Trump’s biggest supporters. I think he had more than 90% support. And then this was one of the biggest crops in 20 or 30 years. So it was a perfect storm, but I think we have addressed the farmer’s concerns. And I’m not gonna get ahead of the president, but I believe when the announcement of the deal with China, it is made public, that our soybean farmers will feel very good about what’s going on, both for this season and the coming seasons for several years.

Chinese readout

On October 25–26 local time, He Lifeng, Vice Premier of the State Council and the Chinese lead for China-U.S. economic and trade talks, held consultations in Kuala Lumpur, Malaysia with his U.S. counterparts—Treasury Secretary Scott Bessent and U.S. Trade Representative Greer. Guided by the important consensus reached in recent phone calls between the two heads of state this year, the two sides conducted candid, in-depth, and constructive exchanges on key economic and trade issues of mutual concern. These included U.S. Section 301 measures on China’s maritime logistics and shipbuilding industries, the extension of the reciprocal tariff suspension period, tariffs and law enforcement cooperation related to fentanyl, agricultural trade, and export controls. The two sides reached a basic consensus on arrangements to address each other’s concerns and agreed to further specify the details and complete their respective domestic approval procedures.

He Lifeng stated that the essence of China-U.S. economic and trade relations is mutual benefit and win-win cooperation. Both sides stand to gain from cooperation and to lose from confrontation. Maintaining the stable development of China-U.S. economic and trade relations serves the fundamental interests of the two countries and their peoples, and also meets the expectations of the international community. Regarding the differences and frictions arising in economic and trade cooperation, the two sides should, in the spirit of mutual respect, peaceful coexistence, and win-win cooperation, find proper ways to address each other’s concerns through equal dialogue and consultation. The outcomes of China-U.S. economic and trade consultations have not come easily and should be jointly cherished. He expressed the hope that the U.S. side will move in the same direction as China to faithfully implement the important consensus reached by the two heads of state and the outcomes of previous consultations this year, build greater mutual trust, manage differences, expand mutually beneficial cooperation, and push bilateral economic and trade relations to new heights.

The U.S. side stated that the U.S.-China economic and trade relationship is the most influential bilateral relationship in the world. The U.S. side is willing to resolve differences and strengthen cooperation with China in a spirit of equality and mutual respect, so as to achieve common development.

The two sides agreed that, under the strategic guidance of the two heads of state, they will make full use of the China-U.S. economic and trade consultation mechanism to maintain close communication on respective concerns in the economic and trade fields, promote the sound, stable, and sustainable development of China-U.S. economic and trade relations, bring benefits to the two peoples, and contribute to global prosperity.

当地时间10月25日至26日，中美经贸中方牵头人、国务院副总理何立峰与美方牵头人、美国财政部长贝森特和贸易代表格里尔在马来西亚吉隆坡举行中美经贸磋商。双方以今年以来两国元首历次通话重要共识为引领，围绕美对华海事物流和造船业301措施、延长对等关税暂停期、芬太尼关税和执法合作、农产品贸易、出口管制等双方共同关心的重要经贸问题，进行了坦诚、深入、富有建设性的交流磋商，就解决各自关切的安排达成基本共识。双方同意进一步确定具体细节，并履行各自国内批准程序。

何立峰表示，中美经贸关系的本质是互利共赢，双方合则两利、斗则俱伤，维护中美经贸关系稳定发展，符合两国和两国人民的根本利益，也符合国际社会的期待。对于在经贸合作中出现的分歧和摩擦，双方应本着相互尊重、和平共处、合作共赢的原则，通过平等对话协商，找到妥善解决彼此关切的办法。中美经贸磋商成果来之不易，需要双方共同维护。希望美方与中方相向而行，共同落实好两国元首历次通话重要共识和今年以来历次经贸磋商成果，进一步积累互信、管控分歧，拓展互利合作，推动双边经贸关系不断迈向更高水平。

美方表示，美中经贸关系是全球最具影响力的双边关系，美方愿同中方通过平等、尊重的方式解决分歧、加强合作，实现共同发展。

双方同意，将在两国元首战略引领下，充分发挥中美经贸磋商机制作用，就双方在经贸领域的各自关切保持密切沟通，推动中美经贸关系健康、稳定、可持续发展，造福两国人民，促进世界繁荣。

Briefing by Li Chenggang, China’s Vice Minister of Commerce and Deputy International Trade Representative, to CGTN:

The discussions covered a wide range of topics, including export control issues of concern to both sides; the question of further extending the reciprocal tariff suspension period; issues related to fentanyl tariffs and counter-narcotics cooperation; expanding trade; and U.S. Section 301 measures on shipbuilding fees, among others. The two sides engaged in constructive exchanges on these matters. The U.S. side took a firm stance, while the Chinese side was resolute in safeguarding its interests. After more than a day of intensive discussions, both sides explored constructive ways to properly address their respective concerns and reached a preliminary consensus. The next step will be for each side to carry out its internal approval procedures.

Following the U.S.–China consultations in Kuala Lumpur, both sides further agreed that a stable economic and trade relationship between China and the United States serves the interests of the world. Going forward, the two sides will strengthen communication and exchanges, and make active efforts to promote a more stable and healthy development of China–U.S. economic and trade relations.

中国商务部国际贸易谈判代表兼副部长李成钢对CGTN有一个briefing：双方的讨论包括众多的议题，比如双方各有关注的出口管制议题，对等关税进一步延长暂停期间问题，芬太尼关税和芬太尼禁毒合作问题，进一步扩大贸易问题，美方 301 船舶收费相关措施问题等等，中美双方就此进行了建设性的探讨，美方表达立场是强硬的，中方维护利益是坚定的。经过一天多的非常紧张的讨论，中美双方就上述这些议题建设性地探讨了一些妥善处理双方关注的方案，形成了初步共识。下一步各自将会履行内部报批程序。

经过这一次中美吉隆坡的磋商，双方进一步认为，一个稳定的中美经贸关系有利于世界未来中美双方将进一步加强沟通交流，为中美经贸关系更稳定、更健康的发展做出积极的努力。

China’s official media outlets — Xinhua News Agency and People’s Daily — both published commentaries with an overall friendly and positive tone.

Xinhua’s piece stressed that differences between China and the United States in economic and trade relations are natural, but dialogue and consultation should never be abandoned.

As the world’s two largest economies, China and the United States have extensive, multifaceted, and wide-ranging economic and trade exchanges involving numerous stakeholders. It is natural that differences may arise. When divergences or frictions occur in the course of economic and trade cooperation, both sides should uphold the principles of mutual respect, peaceful coexistence, and win-win cooperation, and seek proper solutions to each other’s concerns through dialogue and consultation on an equal footing.

中美作为全球前两大经济体，经贸交往规模庞大、内涵丰富、覆盖面广、涉及主体多元，存在分歧是正常的。对于在经贸合作中出现的分歧和摩擦，双方应本着相互尊重、和平共处、合作共赢的原则，通过平等对话协商，找到妥善解决彼此关切的办法。

The People’s Daily’s Zhong Sheng column emphasised that “the results of consultations have not come easily and should be jointly safeguarded by both sides.” It also noted that the recently concluded Fourth Plenary Session of the 20th CPC Central Committee, which reviewed and adopted the recommendations for China’s 15th Five-Year Plan, demonstrated the country’s strategic foresight, strong stability, and contribution of precious certainty to global development.

The essence of China-U.S. economic and trade relations lies in mutual benefit and win-win cooperation. Both sides stand to gain from cooperation and lose from confrontation — a truth repeatedly proven over decades of bilateral relations. Maintaining the overall stability and sound development of China-U.S. economic and trade relations serves the fundamental interests of both countries and peoples, and meets the expectations of the international community. Looking back on the five rounds of consultations, each time positive signals emerged from the meeting room, they brought valuable warmth to global markets. As a responsible major country, China has shown composure and wisdom, consistently advocating that China and the United States should demonstrate strategic vision and responsibility, and opposing ‘decoupling and supply chain severance,’ so as to jointly safeguard the security and stability of global industrial and supply chains. The U.S. side has also repeatedly stated that it ‘has no intention of decoupling from China’ and that ‘the U.S.-China economic and trade relationship is the most influential bilateral relationship in the world.’ Since both sides share this consensus, they should move toward each other, cherish every achievement from dialogue, continue building mutual trust and managing differences, and keep the China-U.S. economic and trade relationship on the track of mutually beneficial cooperation for the long run.

中美经贸关系的本质是互利共赢，双方合则两利、斗则俱伤，这是被过去数十年两国关系发展反复验证的真理。维护中美经贸关系稳定发展大局，符合两国和两国人民的根本利益，也符合国际社会的期待。回顾这5轮磋商，每一次从会场传出积极信号，都为全球市场带来宝贵暖意。中国作为负责任大国，展现了大国的定力和智慧，一直主张中美应展现大格局、大担当，一直反对“脱钩断链”，共同维护全球产供链安全稳定。美方也多次表示，“美方无意与中方脱钩”“美中经贸关系是全球最具影响力的双边关系”。既然有这个共识，双方就应相向而行，珍惜每一次磋商成果，不断积累互信、管控分歧，推动中美经贸关系在互利合作的轨道上行稳致远。