Chinese Deputy Prime Minister He Lap Phong and US Treasury Secretary Scott Bessent have begun a new round of trade talks in Kuala Lumpur, Malaysia, a move seen as preparing for a potential meeting between the two leaders of the world's two largest economies.
On October 24, the Chinese Ministry of Commerce confirmed that the two sides will discuss key issues for bilateral economic and trade relations. The meeting in the Malaysian capital marked the fifth direct meeting between Mr. Ha Lap Phong and Mr. Bessent since US President Donald Trump escalated the trade war in April.
Bilateral relations between the US and China have been volatile in recent weeks, but these negotiations could open the door to a potential easing of tensions.
Tensions have broken out after October 9, when China announced broader export control measures for rare earths - important minerals for the production of many high-tech products, including in the defense industry.
President Trump quickly responded with a threat to increase tariffs on Chinese goods by 100%, starting on November 1. Meanwhile, the temporary trade "war" agreement between the two countries expires next month. However, tensions have since eased somewhat after Trump said the tariffs were unsustainable.
"All options are being considered," Bessent said in an interview on October 22, but also expressed hope that the two sides will resolve some differences this weekend so that US President Donald Trump and Chinese President Xi Jinping can enter the negotiations with a more positive attitude. Mr. Trump and President Xi Jinping are expected to meet on October 30 - November 1 on the sidelines of the APEC forum in South Korea.
President Trump expressed optimism about the possibility of reaching an agreement "on everything" with Chairman Xi Jinping - including China's resumption of soybean purchases.
