Kuala lumpur: US Treasury Secretary Scott Bessent announced on Wednesday that the United States and China will conduct two days of trade discussions in Malaysia's capital, Kuala Lumpur, over the weekend. The talks, scheduled for Saturday and Sunday, will involve Bessent meeting with Chinese Vice Premier He Lifeng, as disclosed to Fox Business Network.
According to Anadolu Agency, the discussions are taking place against the backdrop of the Association of Southeast Asian Nations (ASEAN) summit hosted by Malaysia from Sunday to Tuesday. US Trade Representative Jamieson Greer is also slated to participate in the negotiations.
Bessent expressed optimism that the two nations could resolve their respective trade issues during these talks, paving the way for a more positive engagement between US President Donald Trump and Chinese President Xi Jinping. This meeting is seen as an opportunity to avoid using their first in-person encounter during Trump's second term to address existing challenges, instead fostering a constructive dialogue between the US and China.
President Trump confirmed on Wednesday his intention to meet with President Xi during his forthcoming trip to Asia, which will also include visits to Malaysia and Japan. Bessent added that Trump is expected to have a "pull-aside" meeting with Xi at the Asia-Pacific Economic Cooperation summit in South Korea.
The trade discussions come at a time of heightened tensions, with China recently expanding restrictions on rare earth exports, prompting Washington to threaten additional tariffs on Chinese goods. China dominates the global market for rare earths, accounting for over 90% of the supply. Bessent noted that Washington is considering responses in collaboration with its allies should negotiations fail to yield a pause or relief on these restrictions.
Bessent remained hopeful about achieving a successful de-escalation, emphasizing the importance of the two-day talks. This meeting in Kuala Lumpur marks the fifth round of negotiations, following previous discussions held in Geneva, London, Stockholm, and Madrid.
In August, the US and China had agreed to a truce on tariffs until November 10, following multiple adjustments by both sides. China confirmed the upcoming meeting between Bessent and He Lifeng, as stated in a Commerce Ministry release. The ministry highlighted that the discussions would address key issues in China-US economic and trade relations, in line with the 'consensus reached during multiple phone calls by the nations' leaders this year.'