US Treasury Secretary Scott Bessent announced on Sunday that the United States and China have established a "very substantial framework" aimed at preventing the US from imposing 100% tariffs on Chinese goods. This agreement also allows for a deferral of China's rare earth export controls. The announcement follows high-level discussions in Kuala Lumpur, Malaysia, in anticipation of a meeting between US President Donald Trump and Chinese President Xi Jinping next week.

Bessent shared insights during an interview on NBC’s "Meet the Press," stating, "No, I’m not [anticipating the 100% tariffs], and I’m also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed." He noted that final terms would be determined by Trump and Xi.

The talks come amid rising tensions, particularly after Trump threatened to impose new tariffs starting November 1 in response to China's expanded controls on rare earth materials. Previously, the US and China had rolled back most tariffs under a trade truce signed in May, which is set to expire on November 10. Bessent mentioned that the truce could be extended based on the president's decision.

Economic officials from both nations, including China’s Vice Premier He Lifeng and top trade negotiator Li Chenggang, engaged in discussions with Bessent and US trade representative Jamieson Greer during the Asean summit. Li indicated that a preliminary consensus was reached on various issues, including the extension of the trade truce and measures related to fentanyl and export controls, although specific details were not disclosed.

Trump, who arrived in Malaysia for the Asean summit, expressed optimism about the negotiations, stating, "I think we have a very successful framework for the leaders to discuss on Thursday." He also hinted at the possibility of further meetings with Xi in both China and the United States.

The framework aims to ease the ongoing trade war, which has seen numerous sanctions and threats of retaliatory actions. Key topics for the upcoming Trump-Xi discussions include Chinese purchases of US soybeans, the situation in Taiwan, and the release of jailed Hong Kong media tycoon Jimmy Lai. Concerns over rare earth export controls have raised global supply issues, leading Washington to consider restrictions on software-powered exports to China, such as laptops and jet engines.

The outcome of the Kuala Lumpur talks is expected to pave the way for the Trump-Xi meeting next week in South Korea, although Beijing has not yet officially confirmed the summit.