The United States and China concluded negotiations in Kuala Lumpur that market players described as a welcome step toward easing trade war tensions.
According to Reuters, top negotiators met on the sidelines of the ASEAN summit to try to avoid a deeper fight over export controls and tariffs.
Trade war negotiations provide preliminary framework
Based on reports, negotiators have outlined a preliminary framework aimed at easing sticking points ahead of the planned summit between U.S. President Donald Trump and Chinese President Xi Jinping.
The Financial Times reported that Treasury Secretary Scott Bessent described the deal as a “very positive” framework covering export controls, shipping tariffs and agricultural trade.
BREAKING: US Treasury Secretary Bessent says China is ‘ready’ to reach trade deal with US after 2 days of negotiations.
Bessent says the deal will remove President Trump’s 100% tariffs set to take effect on November 1.
– Kobeissi Letter (@KobeissiLetter) October 26, 2025
Another report indicates that the discussions have temporarily ruled out the short-term threat of a complete change in customs duties which had worried the markets.
Officials reportedly reached deals to avoid the imposition of 100% tariffs, which had been threatened, although final approvals still require national review.
Delegates from the two countries met in Malaysia during the broader ASEAN meetings, providing negotiators with a neutral venue and an integrated audience of regional leaders.
The talks were timed to coincide with the ASEAN summit and emphasized that they were aimed at maintaining momentum towards the leaders’ meeting next week.
Crypto Markets React Quickly
The markets reacted within hours. According to reports from CoinDesk, Bitcoin briefly topped $113,000 as traders bought risky assets following the positive headlines, but volatility followed and large leveraged positions were offset – worth more than $657 million, split roughly equally between long and short bets.
Why it matters for risky assets
When geopolitical risk subsides, some investors return to stocks and cryptocurrencies. This change may increase demand and drive up prices, at least for a while.
But it’s not a win-win situation. The framework is a first step. The text of the agreement must be transformed into firm actions and then approved by leaders and regulators. Markets might rejoice now, then retest the news as details emerge.
Perspectives and remaining questions
The reports revealed several outstanding issues: the exact terms of export controls, the timing of any tariff reductions and what form their implementation will take.
Even with positive signals, macroeconomic factors like interest rates and inflation will still determine whether crypto sees a sustainable recovery or just a short-lived rebound.
Featured image from Getty Images, chart from TradingView
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
