Kuala Lumpur, Oct 25: Senior economic officials from the United States and China met on Saturday in Kuala Lumpur to prevent a further escalation of the ongoing trade war, according to reports. The discussions are intended to pave the way for a meeting next week between US President Donald Trump and Chinese President Xi Jinping.
The talks coincide with the Association of Southeast Asian Nations (ASEAN) summit and come amid threats from the US to impose 100% tariffs on Chinese goods starting November 1, in response to China’s expanded export controls on rare earth minerals and magnets. The US has also expanded its export blacklist, adding thousands of Chinese firms to restricted lists.
“These developments have disrupted a delicate trade truce crafted over four meetings since May by US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng,” The Sun reported. China’s top trade negotiator Li Chenggang also attended the Kuala Lumpur discussions.
Officials from both nations have provided limited information about the talks, which aim to ensure that the leaders’ summit in South Korea proceeds smoothly. Key issues likely to be discussed include interim tariff relief, technology export curbs, and China’s purchase of US soybeans.
President Trump, speaking before the talks, emphasized that he plans to discuss farmers and raise human rights issues, including the detention of Hong Kong media tycoon Jimmy Lai. Analysts noted that the outcome remains uncertain, particularly over China’s rare earth export controls, which are considered strategically critical.
The ongoing negotiations seek to avoid a return to triple-digit tariffs seen earlier in the year. A truce negotiated in May had initially reduced US tariffs to 55% and Chinese tariffs to 30%, while restoring limited rare earth exports. However, the agreement frayed after the US Commerce Department expanded its export blacklist and China implemented new export controls on October 10.
“The US side may push Beijing to resume purchases of American soybeans, which have largely stalled, affecting farmers who are a key political constituency,” reports noted. The discussions in Kuala Lumpur represent the latest effort to stabilize trade ties between the world’s two largest economies ahead of the Trump-Xi summit.