US Treasury Secretary Scott Bessent has said that he anticipates that China will revive substantial purchases of US soybeans for several years and will delay its expanded licensing regime for rare earths by a year and re-examine it after two days of trade talks in Malaysia.
Bessent told the CBS program "Face the Nation" on Sunday that the soybean purchases would be substantial. Bessent said on ABC's "This Week" program that when President Donald Trump and President Xi Jinping announce a trade deal next Thursday US soybean farmers "will feel very good about what's going on both for this season and the coming seasons for several years."
Bessent anticipated the agreement would defer China's expanded export controls on rare earth minerals and magnets and avoid a new 100 percent US tariff on Chinese goods threatened by Trump.
He said Trump and Xi would discuss soybean and agricultural purchases from American farmers, more balanced trade, and resolving the US fentanyl crisis, which was the basis of 20 percent US tariffs on Chinese goods.
Bessent also said on "Face the Nation" that the details for a deal to transfer ownership of Chinese short video app TikTok to US control were ironed out and that Trump and Xi would be able to "consummate" the transaction next week.
Trump arrived in Malaysia on Sunday for a summit of the Association of Southeast Asian Nations (ASEAN), his first stop in a five-day Asia tour that is expected to culminate in a face-to-face with Xi in South Korea on October 30.
After the talks, he struck a positive tone, saying: "I think we’re going to have a deal with China".
Trade truce
Both sides are looking to avert an escalation of their trade war after Trump threatened new 100 percent tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China's expanded export controls on rare earth magnets and minerals.
Beijing and Washington rolled back most of their triple-digit tariffs on each other's goods under a trade truce, which is due to expire on November 10.
Bessent said the truce could be extended, pending the president's decision, marking a second extension since it was first signed in May.
Talking points
While the White House has officially announced the highly anticipated Trump-Xi talks, Beijing has yet to confirm that the two leaders will meet.
On the sidelines of the ASEAN Summit, Trump hinted at possible meetings with Xi in China and the United States.
Among Trump's talking points with Xi are Chinese purchases of US soybeans, concerns around democratically-governed Taiwan which Beijing views as its own territory, and the release of jailed Hong Kong media tycoon Jimmy Lai.
Trump also said that he would seek China's help in Washington's dealings with Russia, as Moscow's war in Ukraine grinds on.
