China Confirms US Trade Talks in Malaysia Ahead of Potential Xi-Trump Summit

China has officially confirmed that trade talks with the United States will take place in Malaysia, signaling a potential high-level meeting between Presidents Xi Jinping and Donald Trump. The discussions aim to address ongoing trade tensions and explore avenues for economic cooperation between the two countries. This development comes amid global attention on US-China relations, highlighting the significance of diplomatic engagement and the potential impact of the talks on international trade and economic stability.

China’s Vice-Premier He Lifeng is scheduled to meet with US officials for trade discussions in Malaysia from Friday through Monday, according to Beijing’s Ministry of Commerce on Thursday.

The talks will address “key issues in China-US economic and trade relations,” following the “agreements reached during several phone calls between the two nations’ leaders this year,” the ministry said on its official website. This upcoming negotiation represents the fifth round of trade talks between the world’s two largest economies and is expected to pave the way for a meeting between Presidents Xi Jinping and Donald Trump in South Korea.

US Treasury Secretary Scott Bessent noted on social media last week that he and Vice-Premier He had “frank and detailed discussions” via video call, and they planned to continue the dialogue in Malaysia. Earlier this month, tensions escalated due to new economic sanctions, export restrictions, and a threat of 100% tariff hikes from the US, risking the progress of previous negotiations and extensions of the temporary truce reached after April’s peak conflict.

China recently expanded its export control rules for rare earth elements, framing the move as retaliation against the US for widening its Entity List sanctions targeting companies and individuals. In an interview on Fox Business Network, Bessent described China’s new restrictions as “China versus the globe, not just the US,” calling the licensing requirements “unworkable and unacceptable.”

The updated regulations require exporters to obtain approval before shipping rare earth elements, items containing these minerals, or certain technologies and equipment used in extraction or processing to foreign buyers. Bessent stated that if no pause or relief is negotiated, the US and its allies would consider how to respond. He expressed hope that the issue could be resolved over the weekend to allow the leaders’ meeting to start on a “more positive note.”

Trump, speaking to the media on Wednesday, expressed confidence that an agreement would be reached with Xi, downplaying the impact of China’s recent export restrictions. “I think we’ll make a deal, the rare earth issue is the least of it,” Trump said. “We’ll reach an agreement on soybeans, farmers, and possibly even nuclear issues.”

For questions or comments write to contactus@bostonbrandmedia.com

Source: scmp‍