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The United States and China will resume high-level trade negotiations this weekend in Malaysia’s capital, Kuala Lumpur, as the world’s two largest economies seek to ease tensions following a renewed escalation over rare earth exports and tariffs.
U.S. Treasury Secretary Scott Bessent said he will meet with Chinese Vice Premier He Lifeng on Saturday and Sunday for two days of discussions, joined by U.S. Trade Representative Jamieson Greer.
The talks coincide with the Association of Southeast Asian Nations (ASEAN) summit, which Malaysia will host from Sunday to Tuesday.
Bessent told Fox Business Network that both sides are aiming to "get their respective issues ironed out" before a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this month.
He said it would be "a shame to waste their first in-person meeting during President Trump’s second term trying to get past some problems rather than moving towards a more constructive dialogue."
According to China’s Commerce Ministry, Vice Premier He Lifeng will lead a delegation to Kuala Lumpur from Oct. 24 to 27 to hold "economic and trade talks with the United States."
The ministry said the discussions would focus on "important issues in the economic and trade relationship" between the two nations.
The talks come after Beijing imposed sweeping controls on its rare earth industry earlier this month, prompting Washington to threaten additional tariffs of up to 100% on Chinese imports.
Rare earth elements are critical materials used in the production of electronics, renewable energy technologies, and defense systems. China currently produces more than 90% of the global supply.
In response to the export restrictions, the U.S. and China have also begun imposing arrival fees on each other’s ships, following a U.S. "Section 301" investigation that deemed Beijing’s market dominance to be unfair.
Bessent said Washington remains "optimistic" about reaching a temporary de-escalation but emphasized that "all options are on the table" if progress stalls.
The Kuala Lumpur discussions will mark the fifth round of in-person negotiations between the two sides, following earlier meetings in Geneva, London, Stockholm, and Madrid.
The renewed dialogue also follows a temporary truce agreed in May, which paused new tariffs until Nov. 10.
The agreement came after the U.S. raised duties on Chinese goods to as high as 145%, while Beijing retaliated with tariffs of up to 125% following a tit-for-tat escalation in April triggered by President Trump’s announcement of sweeping reciprocal measures.
President Trump, who is scheduled to attend both the ASEAN summit in Malaysia and the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month, confirmed plans for a "pull-aside" meeting with Xi during the APEC event starting Oct. 31.
Trump has previously stated he hopes to reach a "good deal" with China and bring an end to the prolonged tariff war.
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