U.S.-China trade discussions in Kuala Lumpur are raising hopes of a direct meeting between President Donald Trump and President Xi Jinping as both sides seek to ease escalating economic tensions.
High-Level US-China Trade Negotiations Resume Amid Tariff Threats
The second day of high-level talks brought U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent together with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang, according to Reuters.
These discussions mark the fifth round of in-person negotiations since May.
"I think that we’re getting to a spot where the leaders will have a very productive meeting," Greer said, stepping away from the talks to meet with Trump.
Rare Earths, Trade Truce And Economic Tensions Dominate Talks
Greer confirmed that a broad range of topics were discussed, including extending the current truce on trade measures.
The meetings come as Trump threatened 100% tariffs on Chinese goods starting November 1 in response to China's expanded export controls on rare earth minerals, which are critical for technology, defense, and electronics industries worldwide.
Trump arrived in Kuala Lumpur as part of a five-day Asia tour expected to culminate in a face-to-face with Xi in South Korea.
Key priorities include Chinese purchases of U.S. soybeans, Taiwan security concerns, the release of jailed Hong Kong media tycoon Jimmy Lai, and cooperation on Russia.
See Also: Scott Bessent's ';Constructive' Call Sets Up US–China Negotiations
Trump Eyes Kim Meeting As US-China Trade Tensions Rise
Last week, President Trump indicated he was open to meeting North Korean leader Kim Jong Un at the DMZ during his Asia trip, highlighting his strong relationship with the North Korean leader.
At the same time, U.S.-China trade tensions escalated as President Trump threatened new tariffs on Chinese imports.
Xi faced internal challenges during the Communist Party's fourth plenum, including the purge of nine senior military officers, which political scientist Gordon Chang called "unprecedented."
Economists reacted to Trump's tariff escalation and subsequent walk-back.
Peter Schiff posted on X, calling it "TACO strikes again," criticizing Trump for not following through on threats
Vice President JD Vance described the tariff threat as a negotiation tactic.
Read More:
- Trump's Trade War Gambit: Why America May Lose More Than China in Tariff Escalation
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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