US-China trade deal closing in ahead of high-stakes meeting between Trump and Xi

The United States and China agreed on an preliminary framework for a trade deal, officials from both sides said on Sunday.

The development came during talks on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur. US President Donald Trump and Chinese leader Xi Jinping hope to further finalise the deal during their high-stake meeting on Thursday in South Korea, the final stop of Trump's trip through Asia.

The trip's aim is to work on investment deals and peace efforts, with the US leader visiting Malaysia, followed by Japan and South Korea.

Tension has been high between the world's two largest economies. Recently, Beijing decided to implement tighter restrictions on rare earths exports that are needed for advanced technologies.

In response, Trump threatened additional tariffs on Chinese imports.

Trump's Treasury Secretary, Scott Bessent, called it “a very successful framework" and said the deal could eliminate Trump's tariffs starting November 1, while China would delay its implementations of the restrictions by a year.

Chinese officials did not provide details.

Trump also expressed confidence that an agreement was nearby, claiming that both China and the US "want to make a deal".

The US leader reiterated he plans to visit China in the future and offered Xi an invitation to come to Washington or Mar-a-Lago, Trump’s private club in Florida.