Trade dispute: tariff rapprochement between China and the USA

China and the US have moved closer together in the tariff and trade dispute. Both sides have reached a preliminary agreement, said Li Chenggang, Vice Secretary of the Chinese Ministry of Commerce, after talks with the US side. This agreement now has to "go through an internal approval process" on both sides. China did not initially provide any specific details. US Treasury Secretary Scott Bessent also spoke of positive negotiations in Kuala Lumpur, which are a prelude to the meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea on Thursday. It will then become clear whether a deal will be reached.

Trump said on the sidelines of the summit in Malaysia: "I think we're going to reach a good agreement with China." According to the transcript of the interview, Bessent told CBS News that he didn't want to preempt the heads of state, but he assumed that the US threat to impose extra tariffs on imports of Chinese products starting November 1 was off the table. This also applies to an export control system that China could introduce, Bessent told CBS News. It concerns rare earths.

In the interview, Bessent also offered hope to soybean farmers in the US that the Chinese boycott could be ended. He also clarified details for the TikTok deal to be finalized. The Chinese social media platform must sell its US business. Over the weekend, China and the US held the fifth round of trade talks in Malaysia to resolve the months-long dispute.