China and the United States have reached "basic consensuses on arrangements to address respective trade concerns" after two days of talks in Malaysia, Xinhua News Agency reported.

The two delegations, led by Vice Premier He Lifeng and US Treasury Secretary Scott Bessent respectively, had "candid, in-depth and constructive exchanges of views on important trade and economic issues of mutual concerns".

Xinhua also said both sides agreed to make full use of the China-US economic and trade consultation mechanism, maintain close communication and promote the healthy, stable and sustainable development of economic and trade relations.

The vice premier said Beijing and Washington should uphold the principles of mutual respect, peaceful coexistence and win-win cooperation, conduct dialogue and consultation on equal footing, and find ways to properly address each other's concerns regarding their economic and trade differences and frictions.

"China and the US constructively discussed... ways to properly address issues both sides are concerned about and reached a preliminary consensus," Vice Commerce Minister and international trade negotiator Li Chenggang said in Kuala Lumpur.

"The US position has been tough," Li said. "We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns."

He added that the two sides maintained mutual respect and engaged in dialogue on an equal footing.

The latest round of talks came ahead of a possible meeting between President Xi Jinping and his US counterpart Donald Trump in South Korea later this week.

"I think we have a very successful framework for the leaders to discuss on Thursday," Bessent told reporters.

He told NBC's "Meet the Press" that he anticipated an agreement would defer China's expanded export controls on rare earth minerals and magnets, and avoid a new 100 percent US tariff on Chinese goods threatened by Trump.

Bessett added that Xi and Trump would discuss soybean and agricultural purchases from American farmers, more balanced trade and resolving the US fentanyl crisis.

While the White House has officially announced the highly anticipated talks, Beijing has yet to confirm that the two leaders will meet.

Trump said he was confident of a "great" deal when he meets Xi.

"I think we're going to make a deal," he told reporters in Kuala Lumpur.

"It's going to be great for China, great for us." (Agencies)