Chinese President Xi Jinping and U.S. President Donald Trump take part in a welcome ceremony in Beijing on November 9, 2017. Getty Images
As noted by CNN
Over this weekend, the United States and China are preparing a new round of trade talks in Malaysia to restore productive relations ahead of the anticipated meeting between Donald Trump and Chinese leader Xi Jinping.
The delegations are led by U.S. Treasury Secretary Scott Bessent, Trade Representative Jameson Grier, and Chinese Vice Premier He Lifeng, who will outline the framework for further negotiations ahead of the Trump-Xi meeting, planned for next Thursday during the summit in South Korea.
The fifth round of trade negotiations portends a tense period in the U.S.-China relationship, as both sides have imposed broad restrictions in response to each other’s actions after months of relative stability.
In May, the two countries agreed on a temporary trade truce following tariff escalations, which lasted until November 10, before new restrictions resumed.
At the start of the month, China tightened restrictions on rare earth elements, calling it a response to Washington’s expansion of export controls on American technology. China controls about 90% of the world’s processing of critical minerals, which are key to global supply chains in consumer electronics, the automotive sector, and microelectronics.
Such a tactic by Beijing has raised concerns in the United States: Trump pledged to impose additional tariffs on Chinese goods and to enact export restrictions on critical software starting next month, and at one point even considered canceling the meeting with Xi.
The main topics of negotiation are expected to focus on technology and rare-earth element controls.
Before departing for Malaysia, Bessent spoke on Fox Business, saying he was “optimistic” but did not rule out further escalation if Beijing does not meet on rare-earth commodities.
«Everything on the table».
“I hope we can resolve this over the weekend so that the leaders can begin negotiations on a more positive note,” he said, softening the outlook for the Trump–Xi summit as a “pull-aside.”
According to Reuters, the Trump administration is weighing options to intensify pressure through a broad spectrum of export restrictions on software, laptops, and engines.
«Everything on the table».
“If these export restrictions – whether on software, engines, or other items – are enacted, they are likely to be coordinated with our G7 allies.”
«If these export restrictions – whether on software, engines, or other items – are enacted, it will likely be in coordination with our G7 allies».
The Ministry of Commerce of China said that both sides would discuss “key questions” in line with “important consensuses reached during the latest telephone conversations between Xi and Trump,” without providing further details.
The latest contacts between U.S. and Chinese leaders date back to September during a Madrid meeting, where remarks were made about progress in certain areas and discussions of selling TikTok assets to American investors, as well as other trade and global topics.
«The first four rounds of economic and trade consultations between China and the United States have fully shown that, on the basis of mutual respect and equal consultation, both sides are fully capable of finding ways to resolve their problems».
Despite Trump’s remarks about a quick deal, tensions between the United States and China remain high, and real de-escalation has not yet been recorded.
In April, trade diplomacy led to tariff increases on both sides, and China imposed a licensing regime that restricted the export of rare earth elements, affecting global production in several sectors.
The 90-day trade truce was reached during the meeting of Bessent, Grier, and He in Geneva in May and extended in London and Stockholm to accelerate the supply of rare-earth materials and lay the groundwork for the upcoming summit.
Expectably, the topics of negotiations in Malaysia will also chart the path to the future summit between Trump and Xi during the APEC leaders’ meeting.
«We will make a deal on everything, probably on everything,» Trump told reporters on Wednesday in the Oval Office. «We will make a deal on rare-earth elements».
The president also spoke about the possibility of a deal on agricultural products and discussed the U.S. position on Russia’s war with Ukraine. Earlier, China halted purchases of certain goods in May amid growing disagreements.
«What I will really discuss with him is how to end the war with Russia and Ukraine, whether through oil, energy, or something else. And I think he will be very open to this»
After this, Trump will embark on his first Asian visit of his second term, with stops in Malaysia, Japan, and South Korea, preparing to meet Malaysia’s prime minister, the newly elected Japanese leader, and also hold a meeting with the president of South Korea in Busan during the APEC summit.
According to plan, among the meetings are talks with the leadership in Tokyo and participation in related events during the APEC Leaders’ Summit, underscoring the significance of the future dialogue between the world’s two leading economic powers.
Read also:
- Upcoming US-China trade talks in Malaysia aim to reduce tariffs and prevent a trade war, with key meetings planned between top officials and leaders.
- The US and Australia plan a $3 billion investment to reduce dependence on China’s rare earth dominance amid rising trade tensions and supply chain challenges.
- The US supports a new IMF credit program for Ukraine and the EU’s loan initiative backed by frozen Russian assets, aiming to strengthen Ukraine’s financial stability amid ongoing conflict.
