Wealth Pakistan International Desk
KUALA LUMPUR, Oct 26 (Reuters) — Trade negotiations between the United States and China are advancing toward a potential agreement that could soon be reviewed by Presidents Donald Trump and Xi Jinping. The discussions, now in their second day, have renewed hopes of easing tensions between the world’s two largest economies.
Fifth round of in-person discussions
US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng in Kuala Lumpur on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit. It was the fifth round of in-person meetings since May as both countries attempt to de-escalate their long-running trade dispute.
“I think we’re getting to a spot where the leaders will have a very productive meeting,” Greer said before leaving to brief President Trump. China’s top trade negotiator Li Chenggang also joined the discussions.
When asked about rare earths, Greer said that a broad range of issues was discussed, including an extension of the existing trade truce.
Preventing escalation of trade conflict
The talks come at a time when both sides are seeking to avoid renewed escalation. President Trump recently threatened to impose 100 percent tariffs on Chinese goods starting November 1, in retaliation for China’s new export restrictions on rare earth magnets and minerals.
Trump arrived in Kuala Lumpur on Sunday for the ASEAN summit, the first stop on his five-day Asia tour that will conclude with a meeting with President Xi in South Korea. A breakthrough in the current talks could help pave the way for that high-stakes encounter on October 30.
While Washington has confirmed the planned Trump–Xi meeting, Beijing has yet to issue an official confirmation.
Key issues on the table
Among the topics expected to feature in the upcoming meeting are China’s purchases of US soybeans, Washington’s security concerns regarding Taiwan, and the detention of Hong Kong media tycoon Jimmy Lai under China’s national security laws.
President Trump has also said he will seek China’s cooperation on relations with Russia as the war in Ukraine approaches its fourth year. Meanwhile, US Secretary of State Marco Rubio reiterated that the United States would not abandon Taiwan in exchange for trade concessions.
Rare earths and technology restrictions
Tensions between the two powers have risen in recent weeks despite a fragile truce reached in Geneva in May and extended in August. Both sides have continued to impose sanctions and export restrictions.
The latest round of negotiations is expected to focus on China’s curbs on rare earth exports, which have disrupted global supply chains. In response, the Trump administration is considering limiting exports of advanced US software and technology to China, according to a Reuters report.
A day before the Kuala Lumpur meetings began, Washington launched an investigation into what it described as China’s “apparent failure” to comply with the Phase One trade agreement signed in 2020. The probe adds to Trump’s growing list of trade measures against Beijing.
Analysts say any new deal is likely to be fragile, as the $660 billion trade relationship between the two nations remains strained by competition and mistrust.
This report was originally published by Reuters.