China and the United States have started a fresh round of trade talks in Malaysia. The discussions come just days before US President Donald Trump and Chinese President Xi Jinping are expected to meet in South Korea next week. Both nations aim to reduce tensions and move closer to ending their long-running trade war.
Talks Begin in Kuala Lumpur
A US Treasury spokesman confirmed that trade talks between the two nations began on Saturday in Kuala Lumpur. Beijing’s state news agency Xinhua also reported that the delegations had “convened” for discussions. The meeting is being held at Merdeka 118, the world’s second-tallest building.
According to AFP journalists, China’s Vice Premier He Lifeng led the Chinese delegation and was seen entering the building with his team. The US delegation entered through a separate entrance. Building staff told AFP that the talks were taking place on the 92nd floor.
High-Stakes Discussion Before ASEAN Summit
The talks come right before the ASEAN Summit in Malaysia and a highly anticipated meeting between President Donald Trump and President Xi Jinping in South Korea next Thursday. The two leaders are expected to meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, which begins on October 31.
The United States and China — the world’s two largest economies — are seeking ways to ease trade tensions and avoid further escalation of tariffs that have affected global markets.
Trump’s Push for a ‘Good Deal’
President Trump has made it clear that he hopes to strike what he calls a “good” deal with China to end the tariff war. However, he had earlier warned that he might cancel the meeting if progress wasn’t made. The ongoing negotiations in Malaysia could lay the groundwork for a breakthrough next week.
Tariff and Trade Tensions Continue
The trade war between China and the US has seen both sides imposing tariffs worth billions of dollars on each other’s goods. Recently, Beijing announced new controls on the rare earths industry, which play a key role in global technology manufacturing. In response, President Trump threatened to impose 100 per cent tariffs on imports from China.
The two countries have also started charging arrival fees on each other’s ships. The move followed a US “Section 301” investigation, which found that China’s dominance in the rare earths sector was “unreasonable.”
A Neutral Ground for Diplomacy
Malaysia has emerged as a neutral venue for the latest trade talks, signalling a strategic shift in how both powers are managing their disputes. By meeting in Kuala Lumpur instead of Washington or Beijing, both sides show an effort to approach the negotiations with a more balanced perspective.
The choice of venue also highlights Southeast Asia’s growing importance as a diplomatic and economic bridge between China and the United States.
