Top US and Chinese officials met in Kuala Lumpur on Saturday in a last-ditch effort to prevent a major escalation in their trade dispute, as President Donald Trump threatens to impose 155% tariffs on Chinese imports starting November 1.
The talks, held on the sidelines of the ASEAN Summit, included US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, China’s Vice Premier He Lifeng, and top negotiator Li Chenggang. Both sides are seeking to restore stability after recent tit-for-tat measures—China tightening rare earth export controls and Washington expanding its export blacklist to thousands of Chinese firms.
Trump–Xi Meeting on the Cards
The Kuala Lumpur dialogue is expected to pave the way for a Trump–Xi Jinping meeting at the upcoming APEC Summit in South Korea—their first encounter since mid-2024.
Discussions are likely to cover tariffs, technology restrictions, agricultural trade, and politically sensitive issues including Taiwan and the imprisonment of Hong Kong media tycoon Jimmy Lai.
Rare Earths and Tech Restrictions Key Flashpoints
Analysts say resolving disputes over rare earth minerals and US tech export bans will be critical. China’s new export licensing system, covering materials vital for electronics, EVs, and defense manufacturing, has become a major leverage point. Experts warn that failure to reach compromise could trigger another tariff spiral and disrupt global supply chains.
Trade Truce Nears Expiry
The current trade truce, extended earlier this year in London and Stockholm, expires on November 10. Its future is uncertain following Washington’s new probe into Beijing’s alleged violations of the 2020 trade deal and China’s suspension of US soybean purchases since September.
Economists caution that without progress in Kuala Lumpur, global markets could face fresh turbulence as the world’s two largest economies edge closer to another trade war.
Key Facts
- US tariffs on Chinese goods: ~55% (temporary truce)
- China’s rare earth exports: Now require special licenses
- Next event: Trump–Xi may meet at APEC Summit, South Korea
- Truce expiry: November 10, 2025
- Rare earths: Crucial for electronics, EVs, and defense systems