KUALA LUMPUR: A second day of US–China trade talks is setting the stage for a “productive meeting” between President Donald Trump and President Xi Jinping, Washington’s top trade envoy said Sunday, lifting hopes of progress between the world’s two largest economies.
US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng on the sidelines of the ASEAN gatherings for a fifth in-person round since May, as both sides seek to de-escalate their trade war.
“I think we’re getting to a spot where the leaders will have a very productive meeting,” Greer said before briefly stepping away to meet Trump. China’s top trade negotiator Li Chenggang also joined the talks.
Asked by a reporter if rare earths were discussed at the talks, which started on Saturday, Greer said a broad range of topics were discussed, including extending the truce on trade measures.
Both sides are looking to avert an escalation of their trade war after US President Donald Trump threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China’s vastly expanded export controls on rare earth magnets and minerals.
Talking points
Trump arrived in the Malaysian capital on Sunday morning for the summit, his first stop in a five-day Asia tour that is expected to culminate in a face-to-face with Xi in South Korea.
A positive outcome for the Kuala Lumpur talks would remove roadblocks for the high-stakes meeting to take place on October 30.
While the White House has officially announced the highly anticipated Trump-Xi talks, Beijing has yet to confirm that the two leaders will meet.
Among Trump’s talking points with Xi are Chinese purchases of US soybeans.
Trump also said that he would seek China’s help in Washington’s dealings with Russia, as Moscow’s war in Ukraine approaches its fourth year.
US Secretary of State Marco Rubio said on Sunday that the US will not walk away from Taiwan in return for trade benefits with China.
Fragile truce
Tensions between the world’s two largest economies flared in the past few weeks as a delicate trade truce – reached after their first round of trade talks in Geneva in May and extended in August – failed to prevent the two sides from hitting each other with more sanctions, export curbs and threats of stronger retaliatory measures.
The latest round of talks is likely to centre around China’s expanded controls of rare earths exports that have caused a global shortage.
That has prompted the Trump administration to consider a block on “critical software” exports to China, from laptops to jet engines, according to a Reuters report.
Any agreement from Sunday’s talks is likely to be fragile as the world’s most important trade relationship, worth $660 billion a year, hangs in the balance.
