(MENAFN) US President Donald Trump said Wednesday that he expects to reach a trade agreement with Chinese President Xi Jinping during their upcoming meeting in South Korea, according to reports.

"I think we're going to have a deal. I think it'll be a good deal for both. And that's really a great result, you know, that's better than fighting and going through all sorts of problems, and, you know, no reason for it," Trump told CEOs at the Asia-Pacific Economic Cooperation summit. He added, "I think it's going to be a great deal for both. So I'll be meeting him tomorrow. A lot of people are interested. They're also interested in what we're doing, but they're interested in that. I can tell you a lot the world is watching."

The meeting follows months of complex diplomatic negotiations between Washington and Beijing amid their ongoing trade dispute during Trump’s first nine months in office. Reports indicate that a “very substantial” framework for the summit has been agreed upon, according to US Treasury officials.

Speaking to reporters aboard Air Force One en route to South Korea, Trump said China would cooperate on reducing fentanyl exports and suggested that he may lower the tariffs imposed in response to the drug and its precursors. “I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” he said.

Trump also noted that trade discussions will cover agricultural products and rare earth minerals, the latter a key concern after China introduced strict export restrictions earlier this month. The restrictions limit processing and manufacturing technologies and require government approval for foreign company cooperation. Trump has warned that failure to comply could trigger additional tariffs and restrictions on software by November 1.

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