China and US Set for Trade Talks in Malaysia Amid Escalating Tariff Tensions

On Thursday, China said that it will soon hold trade talks with the United States in Malaysia. 

Renewed efforts to ease trade tensions:

China announced on Thursday that it will hold a new round of trade talks with the United States in Malaysia later this month. The meeting is seen as a significant step toward easing the growing tensions between the world’s two largest economies, which have been locked in a damaging tariff war for years.

According to China’s Ministry of Commerce, Vice Premier He Lifeng will lead the Chinese delegation to Malaysia from October 24 to 27. The discussions will focus on “important issues in the economic and trade relationship between China and the United States.”

A high-stakes meeting in Malaysia:

The talks in Kuala Lumpur will coincide with US President Donald Trump’s visit to the Malaysian capital for the Association of Southeast Asian Nations (ASEAN) summit from October 26 to 28. The timing suggests that both sides are looking for opportunities to engage in dialogue while participating in regional events.

Earlier this month, China introduced sweeping export controls on its rare earths industry, which is critical for producing high-tech equipment such as smartphones, electric vehicles, and military systems. The move prompted a strong reaction from Washington.

In response, President Trump threatened to impose 100 percent tariffs on Chinese imports, raising fears of another round of trade retaliation that could harm global markets.

The rare earths dispute:

At the heart of the dispute lies the competition over rare earth minerals, an industry China currently dominates. These materials are vital for modern technology, and Beijing’s decision to tighten control over exports has raised alarms in the United States and its allies.

The US recently launched a Section 301 investigation into China’s practices, concluding that its dominance in the rare earth market was “unreasonable.” As a countermeasure, both countries began imposing arrival fees on each other’s ships, further straining trade relations.

Trump and Xi’s potential meeting:

Trump hinted that he might cancel his planned meeting with Chinese President Xi Jinping on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea. However, he has also said that he hopes to strike a “good deal” with Beijing to end the ongoing trade war.

Thursday’s announcement of new talks shows that both sides still see diplomacy as the preferred path forward, despite growing economic and political pressure at home.

Signs of hope amid uncertainty:

The upcoming discussions in Malaysia come after a recent phone call between Vice Premier He Lifeng and US Treasury Secretary Scott Bessent, during which both leaders agreed to continue direct communication and pursue constructive dialogue. While experts caution that resolving the complex issues at the heart of the US-China trade war will take time, the decision to meet again marks a positive development.

A global impact:

The trade talks between China and the US are very significant as both countries want to de-escalate the trade war between them. The outcome of these talks could shape the future of international trade. Both nations have much to gain from cooperation, and much to lose if the trade war deepens.