US and Chinese delegations following a new round of trade talks in Malaysia have reached a “preliminary framework agreement” aimed at reducing tensions caused by mutual tariff increases.
China’s international trade representative Li Qinggang said at a press conference in Kuala Lumpur that the framework agreement will be sent for domestic approval in both countries.
US Trade Representative Jamison Greer stressed that after intensive negotiations last night and this morning, the parties have reached a framework agreement, the final details of which can be reviewed and approved by the leaders of the two countries. He added that the extension of the temporary tariff agreement, which expires on November 10, as well as issues related to rare earth elements were discussed. Greer described the talks as constructive and expressed confidence that the leaders would be able to hold a productive meeting.
The fifth round of talks took place on October 25-26 in Kuala Lumpur. Delegations led by Chinese Deputy Prime Minister He Liming and US Treasury Secretary Scott Bessent discussed bilateral economic and trade issues. Previous talks between the US and China were held in May in Geneva, June in London, July in Stockholm and September in Madrid.
The meetings also serve as preparation for a planned meeting between US President Donald Trump and Chinese President Xi Jinping on October 30 in South Korea for the APEC summit. The outcome of the negotiations will determine how key trade disputes will be resolved and how further cooperation between the two countries will develop.
Ties between the United States and China have become strained in recent months due to tariff and technology restrictions from Washington, as well as Chinese moves to control rare earth elements, which make up a significant part of the world’s supply.
Tariffs The confrontation began after the US raised tariffs on Chinese goods earlier this year and China responded with a matching tariff increase. As a result, US tariffs on goods from China reached 145%, and Chinese tariffs on American goods – 125%.
To resolve the conflict, American and Chinese officials held talks on May 10-11 in Geneva, following which they agreed on a 90-day mutual reduction in tariffs. From May 14, the United States reduced duties on Chinese goods from 145% to 30%, and China – on American goods from 125% to 10%.
The second round of negotiations took place on June 9-10 in London, where the parties agreed on measures to implement previously reached agreements. The third round took place on July 28-29 in Stockholm, where they agreed to extend the temporary agreement on duties for another 90 days from August 12. The fourth round took place on September 14-15 in Madrid, and the parties announced their intention to meet again before the expiration of the interim agreement on November 10.