Trade Talks Show Signs of Progress
The United States and China appear to be moving closer to easing trade tensions after two days of negotiations in Kuala Lumpur, setting the stage for a potential breakthrough when President Donald Trump meets Chinese President Xi Jinping later this month.
Jamieson Greer, the U.S. chief trade representative, told reporters that talks were “moving in the right direction.”
Greer and Treasury Secretary Scott Bessent met with He Lifeng, a senior Chinese economic official, alongside Li Chenggang, China’s lead trade negotiator. This marks the fifth face-to-face meeting since May, signaling a renewed push to stabilize relations between the world’s two largest economies.
Rare Earth Controls Take Center Stage
The discussions, held on the sidelines of the Southeast Asian nations’ summit, focused heavily on rare earth exports - a crucial area of contention. These minerals are vital for high-tech manufacturing, defense, and renewable energy, and China currently dominates the global supply.
When asked whether rare earths were part of the agenda, Greer confirmed that both nations discussed maintaining their current pause on new trade restrictions.
The U.S. side aims to prevent China from tightening its export limits, which have already caused supply chain disruptions and driven up prices worldwide.
Trump has previously threatened to impose 100% tariffs on Chinese goods starting November 1, in response to Beijing’s decision to restrict shipments of rare earth magnets and other strategic materials.
Trump Heads to Asia Amid Tense Backdrop
President Trump arrived in Malaysia on Sunday, marking the first stop of a five-day Asia tour that will culminate in a one-on-one meeting with Xi Jinping in South Korea.
The upcoming October 30 meeting could determine whether both countries move toward de-escalation or renewed economic confrontation.
The White House has confirmed Trump’s attendance, though Beijing has yet to publicly confirm Xi’s participation.
Among the topics expected to surface are Chinese purchases of American soybeans, Taiwan’s political status, and the imprisonment of Hong Kong media mogul Jimmy Lai, whose pro-democracy newspaper Apple Daily was shut down by Chinese authorities.
Trump also indicated he will seek China’s cooperation in containing Russia’s actions in Ukraine, as the war nears its fourth year.
Washington Reaffirms Taiwan Support
Amid speculation of potential concessions, U.S. Secretary of State Marco Rubio emphasized that Washington will not abandon Taiwan in pursuit of trade deals.
Analysts say the statement underscores the fragile balance between diplomatic engagement and national security interests - a balance both sides will need to maintain as talks continue.
A Fragile Truce Faces Its Next Test
The current diplomatic thaw stems from a fragile trade truce reached during talks in Geneva earlier this year, later extended in August. However, recent export controls and retaliatory tariffs from both sides have tested that agreement.
The Kuala Lumpur discussions aimed to rebuild trust and prevent further escalation as both countries face economic slowdowns and political pressure at home.
For now, negotiators describe the talks as “constructive but cautious.” A successful outcome in Malaysia could clear the path for a Trump–Xi breakthrough - or, if talks falter, reignite another wave of tariffs and trade wars.
