China Says “Basic Consensus” Reached with US on Trade Deal Ahead of Xi–Trump Talks

China announced on Sunday that it has reached a “basic consensus” with the United States on a possible trade agreement, signalling a major breakthrough ahead of the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping.

The announcement came after two days of bilateral talks held on the sidelines of the ASEAN Summit in Kuala Lumpur. The talks were led by Chinese Vice Premier He Lifeng and a US delegation headed by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.

Talks described as “constructive”

In a statement, He Lifeng said the discussions were “candid, in-depth, and constructive”, covering a wide range of sensitive trade issues including:

• Tariffs on goods
• Technology and export controls
• Agricultural trade access
• Enforcement cooperation related to illegal fentanyl shipments
• Trade balance and investment rules

Lifeng emphasized that economic cooperation, not confrontation, was the only viable path for both nations.

“The essence of economic relations between China and the United States is mutual benefit and win-win results. Both countries gain from cooperation and lose from confrontation,” he said.

Tensions easing before high-level talks

The development comes at a critical moment as global markets closely watch relations between the world’s two largest economies, which have been locked in years of tariff wars and geopolitical rivalry over technology and supply chains.

President Trump and President Xi Jinping are expected to meet later this week during a high-stakes diplomatic engagement, which may pave the way for a formal trade framework or interim deal.