China’s top trade negotiator, Li Chenggang, told reporters that the two sides had reached a “preliminary consensus,” while Mr. Trump’s treasury secretary, Scott Bessent, said there was “a very successful framework.”

A trade deal between the United States and China is drawing closer, officials from the world’s two largest economies said on Sunday (October 26, 2025) as they reached an initial consensus for President Donald Trump and Chinese leader Xi Jinping to aim to finalise during their high-stakes meeting.

The Republican President is set to meet with Xi on Thursday (October 30) in South Korea, the final stop of his trip through Asia.

Any agreement would be a relief to international markets even 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 Mr. Trump responded by threatening additional tariffs on Chinese products. The prospect of a widening conflict risked weakening economic growth worldwide.

The progress toward a potential agreement came during the annual summit of the Association of Southeast Asian Nations, in Kuala Lumpur, with Mr. 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.