U.S., China to Hold Trade Negotiations in Malaysia’s Kuala Lumpur
(MENAFN) US Treasury Secretary Scott Bessent announced on Wednesday that Washington and Beijing are scheduled to engage in two days of critical trade negotiations this weekend in Kuala Lumpur, Malaysia’s capital.
Bessent confirmed to media that he will meet with his Chinese counterpart, Vice Premier He Lifeng, on Saturday and Sunday. The discussions coincide with the Association of Southeast Asian Nations (ASEAN) summit, taking place Sunday through Tuesday in Malaysia.
US Trade Representative Jamieson Greer is also slated to join the negotiations, as the two economic powerhouses seek to resolve escalating trade disputes.
Bessent conveyed cautious optimism about the talks, stating the hope that both sides can “iron out” outstanding issues during the weekend. This, he said, would allow US President Donald Trump and Chinese President Xi Jinping to “enter their talks in a more positive note.”
“They are in frequent contact, it would be a shame to waste their first in-person meeting during President Trump’s second term, trying to get past some problems rather than moving towards a more constructive dialogue between the US and China,” Bessent added.
President Trump on Wednesday reaffirmed plans to meet Xi during his upcoming Asia trip, which will include stops in Malaysia and Japan. Bessent also revealed that Trump is now “scheduled to do a pull-aside” meeting with Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.
The backdrop to these talks includes China’s recent expansion of restrictions on rare earth exports, which prompted Washington to threaten an additional 100% tariff on Chinese goods. China dominates over 90% of the global rare earth supply, critical for many high-tech industries.
Bessent warned that the US is “contemplating” how it and its allies might respond if negotiations fail to yield a pause or easing of China’s export limits. “All options are on the table. I am optimistic we have had a successful de-escalation but we are going to have two days of very fulsome talks,” he stated.
This upcoming session in Kuala Lumpur will mark the fifth round of talks between the two sides, following previous meetings in Geneva, London, Stockholm, and Madrid.
In August, both countries agreed to a tariff truce set to last until November 10—the third such ceasefire since tariffs were initially raised to 145% by the Trump administration, later reduced. China had responded by increasing tariffs on US goods up to 125%.
The weekend talks are now seen as a critical test of whether the two economic giants can stabilize their strained trade relationship amid rising geopolitical pressures.
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