China’s top trade negotiator Li Chenggang and Vice Premier He Lifeng arrived in Kuala Lumpur Sunday for a second day of U.S.-China trade talks. The meetings, held on the sidelines of the ASEAN summit, involve U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.
The discussions aim to de-escalate tensions after U.S. President Donald Trump threatened new 100% tariffs on Chinese goods starting November 1. Trump’s announcement followed China’s expanded export controls on rare earth magnets and minerals, raising stakes in the world’s largest bilateral trade dispute.
A U.S. Treasury spokesperson described Saturday’s opening session as “very constructive,” signalling cautious optimism for progress in negotiations. Successful talks could clear the path for a meeting between Trump and Chinese President Xi Jinping in South Korea next week.
The White House confirmed the planned meeting, though Beijing has yet to officially acknowledge the engagement between the two leaders. Trump is expected to arrive in Kuala Lumpur Sunday morning, beginning a five-day Asian tour that includes multiple regional summits.
Analysts say these talks are critical to preventing an economic escalation that could reverberate across global markets and supply chains. The outcome could reshape the trajectory of U.S.-China relations, testing both nations’ ability to navigate trade tensions with diplomacy and pragmatism.