US-China trade talks begin in Kuala Lumpur amid tensions ahead of Trump-Xi summit

Senior officials from the United States and China began a fresh round of trade discussions in Kuala Lumpur on Saturday, aiming to defuse rising tensions over tariffs, export restrictions and supply chain disruptions. The three-day meeting, being held from October 25 to 27, is seen as a key step before the much-anticipated meeting between US President Donald Trump and Chinese President Xi Jinping later this month. The talks are being led by US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while the Chinese delegation is headed by Vice-Premier He Lifeng. Officials from both sides said the discussions would focus on practical steps to stabilise trade flows, address tariff disputes, and strengthen global supply networks affected by years of uncertainty.

The two countries have been engaged in an intense trade confrontation for several years, with disputes over technology access, rare earth exports, and industrial subsidies. Washington has warned of a possible 100 per cent tariff hike on Chinese rare earth minerals, while Beijing has hinted at export curbs that could affect global manufacturing and renewable energy sectors. Kuala Lumpur dialogue represents a cautious attempt by both sides to balance economic competition with pragmatic cooperation.

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Setting the stage for Trump-Xi meeting

The Kuala Lumpur discussions come just days before Trump’s scheduled meeting with Xi on October 30 in Gyeongju, South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum. The meeting is expected to be the highlight of Trump’s ongoing Asia tour, which includes stops in Malaysia, Japan and South Korea.

Trump, who arrived in Kuala Lumpur earlier in the day, expressed confidence about a possible breakthrough, telling reporters before departure from Washington that the US and China could reach a “fair and great deal that benefits everyone.” His delegation includes Secretary of State Marco Rubio, Bessent and Greer, underscoring the strategic weight of these engagements.

Trump will also attend the ASEAN summit in Kuala Lumpur on Sunday and Monday, joining leaders from the 10-member bloc and dialogue partners such as Brazilian President Luiz Inácio Lula da Silva, South African President Cyril Ramaphosa, Chinese Premier Li Qiang, Japanese Prime Minister Sanae Takaichi, Australian Prime Minister Anthony Albanese, and Canadian Prime Minister Mike Carney.

Prime Minister Narendra Modi will participate virtually in the summit. The meetings are expected to address regional trade resilience, food security and supply chain cooperation. Several ASEAN economies, including Laos and Myanmar, have been affected by the high tariffs imposed by Washington in August.

Despite the diplomatic efforts, significant disagreements persist. Washington continues to press Beijing to lift restrictions on rare earth minerals and resume large-scale imports of US soybeans. The US has also urged China to curb the flow of fentanyl and its precursors. Beijing, meanwhile, seeks a rollback of tariffs and greater policy stability from the US. “The talks in Kuala Lumpur will test how far both governments are willing to compromise,” said a senior diplomat in Malaysia. “The political messaging ahead of the Gyeongju summit will matter as much as the substance.

The upcoming APEC summit, themed Building a Sustainable Tomorrow: Connect, Innovate, Prosper, will be held under the shadow of the Trump-Xi summit.