US and China say a trade deal is drawing closer as Trump and Xi ready
for a high-stakes meeting
[October 27, 2025] By
CHRIS MEGERIAN, DAVID RISING and EILEEN NG
KUALA LUMPUR, Malaysia (AP) — A trade deal between the United States and
China is drawing closer, officials from the world’s two largest
economies said Sunday as they reached an initial consensus for President
Donald Trump and Chinese leader Xi Jinping to aim to finalize during
their high-stakes meeting.
Any agreement would be a relief to international markets even if it does
not address underlying issues involving manufacturing imbalances and
access to state-of-the-art computer chips.
Beijing recently limited exports of rare earth elements that are needed
for advanced technologies, and Trump responded by threatening additional
tariffs on Chinese products. The prospect of a widening conflict risked
weakening economic growth worldwide.
China’s top trade negotiator, Li Chenggang, told reporters the two sides
had reached a “preliminary consensus," while Trump's treasury secretary,
Scott Bessent, said there was “a very successful framework."
Trump also expressed confidence that an agreement was at hand, saying
the Chinese "want to make a deal and we want to make a deal.” The
Republican president is set to meet with Xi on Thursday in South Korea,
the final stop of his trip through Asia.
Bessent told CBS’ “Face the Nation” that the threat of additional higher
tariffs on China was “effectively off the table.” In interviews on
several American news shows, he said discussions with China yielded
initial agreements to stop the precursor chemicals for fentanyl from
coming into the U.S., and that Beijing would make “substantial”
purchases of soybean and other agricultural products while putting off
export controls on rare earths.
When asked how close a deal was, Trump’s trade representative, Jamieson
Greer, said on “Fox News Sunday” that “it’s really going to depend” on
the two presidents.
Meanwhile, Trump reiterated that he plans to visit China in the future
and suggested that Xi could come to Washington or Mar-a-Lago, Trump’s
private club in Florida.
The progress toward a potential agreement came during the annual summit
of the Association of Southeast Asian Nations, in Kuala Lumpur, with
Trump seeking to burnish his reputation as an international dealmaker.
Yet his way of pursuing deals has meant serious disruptions at home and
abroad. His import taxes have scrambled relationships with trading
partners while a U.S. government shutdown has him feuding with
Democrats.
Trump attends ceasefire ceremony between Thailand and Cambodia
At the summit, Thailand and Cambodia signed an expanded ceasefire
agreement during a ceremony attended by Trump. His threats of economic
pressure prodded the two nations to halt skirmishes along their disputed
border earlier this year.
Thailand will release Cambodian prisoners and Cambodia will begin
withdrawing heavy artillery as part of the first phase of the deal.
Regional observers will monitor the situation to ensure fighting doesn't
restart.
“We did something that a lot of people said couldn’t be done," Trump
said. Cambodian Prime Minister Hun Manet called it a “historic day,” and
Thai Prime Minister Anutin Charnvirakul said the agreement creates “the
building blocks for a lasting peace.”
The president signed economic frameworks with Cambodia, Thailand and
Malaysia, some of them aimed at increasing trade involving critical
minerals. The United States wants to rely less on China, which has used
limits on exports of key components in technology manufacturing as a
bargaining chip in trade talks.
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President Donald Trump speaks during the ASEAN US Summit in Kuala
Lumpur, Malaysia, Sunday, Oct. 26, 2025. (AP Photo/Vincent Thian,
Pool)
 “It’s very important that we
cooperate as willing partners with each other to ensure that we can
have smooth supply chains, secure supply chains, for the quality of
life, for our people and security,” Greer said.
Trump reengages with a key region of the world
Trump attended this summit only once during his first term, and U.S.
Defense Secretary Pete Hegseth seemed unfamiliar with ASEAN during
his confirmation hearing in January.
This year's event was a chance for Trump to reengage with nations
that have a combined $3.8 trillion economy and 680 million people.
“The United States is with you 100%, and we intend to be a strong
partner and friend for many generations to come," Trump said. He
described his counterparts as “spectacular leaders” and said that
“everything you touch turns to gold.”
Trump's tariff threats were credited with helping spur negotiations
between Thailand and Cambodia. Some of the worst modern fighting
between the two countries took place over five days in July, killing
dozens and displacing hundreds of thousands of people.
The president threatened, at the time, to withhold trade agreements
unless the fighting stopped. A shaky truce has persisted since then.
Malaysian Prime Minister Anwar Ibrahim praised the agreement between
Thailand and Cambodia, saying at the summit that "it reminds us that
reconciliation is not concession, but an act of courage.”
Tariffs are in focus on Trump's trip
Trump in Kuala Lumpur met Brazilian President Luiz Inácio Lula da
Silva, who was also attending the summit. There has been friction
between them over Brazil's prosecution of Jair Bolsonaro, the
country's former president and a close Trump ally. Bolsonaro was
convicted last month of attempting to overturn election results in
his country.
During their meeting, Trump said he could reduce tariffs on Brazil
that he enacted in a push for leniency for Bolsonaro.
“I think we should be able to make some good deals for both
countries,” he said.
While Trump was warming to Lula, he avoided Canadian Prime Minister
Mark Carney. The president is angry with Canada because of a
television advertisement protesting his trade policies, and on his
way to the summit announced on social media he would raise tariffs
on Canada because of it.
One leader absent from the summit was Indian Prime Minister Narendra
Modi. Although he was close with Trump during Trump's first term,
the relationship has been more tense lately. Trump caused irritation
by boasting that he settled a recent conflict between India and
Pakistan, and he has increased tariffs on India for its purchase of
Russian oil.
___
Associated Press writers Josh Boak in Tokyo and Jintamas Saksornchai
in Bangkok contributed to this report.
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