Top officials from the United States and China have begun a new round of high-level negotiations in Kuala Lumpur, aiming to ease the growing trade tensions between the two largest economies in the world. The discussions take place at a critical juncture, as both sides face an approaching trade truce deadline on November 10, which could expire if no extension is reached.
According to China’s official Xinhua news agency, the meeting began on Saturday morning, bringing together the two delegations led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent.
Key Figures Lead the Negotiations
He Lifeng, a longtime associate of Chinese President Xi Jinping, and Scott Bessent, representing the US Treasury, have the challenging task of negotiating down the latest round of escalatory measures each country has imposed on the other.
Their discussions are also seen as setting the groundwork for an anticipated meeting between Xi Jinping and US President Donald Trump, expected to take place on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) leaders’ summit in South Korea.
This meeting between the two leaders would be their first in-person interaction since Trump returned to the White House earlier this year.
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Trade Tensions on the Rise
Tensions between Washington and Beijing have intensified in recent weeks. Earlier in October, President Trump sharply criticized Beijing’s decision to expand its controls on rare-earth elements, a move seen by analysts as a potential pressure tactic in ongoing trade negotiations.
In response, Trump hinted at the possibility of raising tariffs sharply on Chinese imports and even canceling his planned meeting with President Xi, signaling how fragile the current trade truce has become.
The situation escalated as both nations introduced new trade restrictions that risk further disrupting global supply chains and financial markets if left unresolved.
High Stakes Before the Truce Deadline
With the trade truce set to expire on November 10, the Kuala Lumpur talks are seen as a last major opportunity to prevent a renewed trade confrontation. Officials from both sides are expected to explore terms for extending the truce and reducing recently imposed trade measures that have unsettled global investors.
The resumption of talks also reflects the growing urgency from both governments to stabilize economic relations before the Xi-Trump summit. A breakdown in discussions could lead to renewed tariffs, impacting sectors ranging from technology to manufacturing and energy.
Path Ahead
While details of the Kuala Lumpur discussions have not been disclosed, both sides appear to be laying diplomatic groundwork for a possible breakthrough later in the week. The upcoming APEC summit in South Korea will likely serve as a testing ground for how much progress can be made toward easing tensions and potentially extending the truce.
The success of these talks will determine whether Washington and Beijing can avoid another escalation that could have ripple effects across global markets. As the November 10 deadline draws closer, all eyes will remain on Kuala Lumpur, where the world’s two biggest economies are attempting to negotiate peace amid a volatile trade landscape.
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