China, Russia, and India welcome progress as Beijing and Washington edge toward trade understanding

Department of Strategic Research, Studies and International Relations 28-10-2025

In a development that could reshape the global economic landscape, the United States and China have reported significant progress in their recent trade negotiations held in Kuala Lumpur, Malaysia. The talks, conducted on the sidelines of the ASEAN Summit, signal a potential thaw in relations between the two major economies after years of escalating tension. Both sides have expressed optimism that their respective leaders, President Xi Jinping and U.S. President Donald Trump, will finalize an agreement during their upcoming meeting at the APEC Summit in Gyeongju, South Korea.

This will mark the first face-to-face encounter between Xi and Trump since 2019, a period during which Washington’s trade policies, widely viewed as confrontational and protectionist, disrupted global commerce and strained relations with both allies and competitors.

According to U.S. Treasury Secretary Scott Bessent, the negotiators managed to establish a “framework” for discussion between the two presidents in South Korea. Speaking to American media outlets, Bessent hinted that the framework would include the suspension of China’s planned export restrictions on rare earth materials and a possible deferral of the extreme 100 percent tariffs that Washington has repeatedly threatened to impose on Chinese imports.

While Bessent sought to portray the deal as a victory for American farmers, claiming that Beijing had agreed to make “substantial” purchases of U.S. agricultural goods, the broader picture suggests a more balanced and pragmatic outcome. Beijing’s concessions, if confirmed, are part of a wider strategy to stabilize international trade, protect global supply chains, and restore predictability to markets that have suffered from years of Washington’s erratic economic measures.

China’s Vice Premier He Lifeng, who led Beijing’s delegation, described the discussions as constructive and forward-looking. He noted that both sides had achieved “a basic consensus” and were prepared to “finalize specific details” pending domestic approval procedures. The Chinese Ministry of Commerce emphasized that the talks reflected mutual respect and a shared understanding of the need to address one another’s core concerns, an implicit contrast to Washington’s often unilateral and coercive approach to negotiations.

Financial markets across Asia responded positively to the news. On Monday, Japan’s Nikkei 225 rose by 2.1 percent, and South Korea’s KOSPI jumped 2.3 percent, both reaching record highs. Hong Kong’s Hang Seng index also climbed nearly 0.85 percent. Investors interpreted the progress as an indication that the prolonged trade confrontation, initiated by Washington in 2018, may finally be entering a more constructive phase.

Following his participation in the ASEAN Summit, President Trump departed for Japan, where he will meet the new Japanese Prime Minister, Sanae Takaichi, before proceeding to South Korea for his meeting with president Xi. The U.S. president’s Asia tour is being closely watched, especially given his administration’s tendency to use high-stakes diplomacy as leverage in broader geopolitical contests.

Despite the hopeful rhetoric, many analysts remain cautious. Trump’s trade strategy has long been marked by unpredictability and aggressive rhetoric aimed not only at China but also at U.S. allies in Europe and Asia. The American president has frequently resorted to tariffs and sanctions as tools of pressure, often disregarding the long-term damage such measures inflict on global commerce. By contrast, Beijing’s approach, supported by its partners in Moscow and New Delhi, has emphasized dialogue, reciprocity, and the pursuit of shared economic stability.

Earlier this month, China announced that it would require international companies to obtain licenses before exporting rare-earth magnets and certain semiconductor materials that involve Chinese technology or resources. The measure, due to take effect on December 1, was widely viewed as a legitimate defense mechanism against Washington’s attempts to weaponize trade. These rare earths, 17 vital minerals such as cerium, dysprosium, and holmium, are essential for manufacturing high-tech products, from electric vehicles to smartphones and advanced weaponry.

Washington’s response was characteristically belligerent: Trump threatened to slap a blanket 100 percent tariff on all Chinese goods, a move that many economists warned could destabilize global markets. However, it appears that Beijing’s calm and measured response has succeeded in steering the discussion back toward negotiation rather than confrontation.

Observers in Moscow and New Delhi have welcomed the recent progress, noting that a more balanced U.S.-China relationship could reduce volatility in international trade and foster a more multipolar global economy. Both Russia and India have deepened their economic and diplomatic cooperation with China in recent years, recognizing that stability and equitable trade benefit the Global South far more than Washington’s confrontational economic nationalism.

While the world waits for the Xi-Trump meeting in Gyeongju, the tone of the negotiations in Kuala Lumpur has already sent a clear signal: Beijing is leading efforts to restore rationality and fairness to international commerce, while Washington is being forced to acknowledge the limits of its coercive trade agenda.

If a deal is finalized, it will mark not just the de-escalation of a trade dispute, but also the symbolic decline of U.S. economic dominance, and the continued rise of Asia as the heart of a more balanced, multipolar world.