US, China Plan New Trade Talks in Malaysia
Bessent and He to Negotiate Tariff Relief Ahead of Trump-Xi Meeting
Key Takeaways:
- U.S. Treasury Secretary Scott Bessent said he will meet Chinese Vice Premier He Lifeng in Malaysia next week to prepare for a Trump-Xi summit.
- The talks aim to ease tensions after President Donald Trump threatened a 100% tariff on Chinese goods, raising fears of a renewed trade war.
- The negotiations follow an earlier truce expiring in November as both nations seek to prevent economic fallout ahead of the planned leaders meeting in South Korea.
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The next round of U.S.-China trade talks is likely set for next week, with Treasury Secretary Scott Bessent and Vice Premier He Lifeng facing the task of negotiating down new escalatory measures between the worlds two largest economies.
Bessent said during a White House event that he will be speaking with He the evening of Oct. 17, around 8:30 or 9:00 p.m. New York time. He and I, and a delegation, will meet in Malaysia probably a week from [Oct. 18], to prepare for the two presidents to meet, the Treasury chief added.
Bessents comments came after President Donald Trump expressed optimism that talks with Chinese officials could yield an agreement to defuse the crisis that saw the U.S. leader threaten to drastically hike tariffs. Taken together, the remarks signaled an effort by Washington to calm fears of a full-blown trade war with Beijing that could have a seismic effect on the global economy.
I think were doing very well. I think were getting along with China, Trump said. The U.S. president also indicated that he believed his planned meeting with Chinese President Xi Jinping, set to take place this month in South Korea on the sidelines of the Asia-Pacific Economic Cooperation leaders summit, would go ahead.
Just a week ago, Trump had raised the prospect of canceling his first in-person meeting with Xi since he returned to the White House, infuriated at his governments vow to exert broad controls on critical rare-earth elements. He also declared a 100% import surtax on Chinese goods to take effect Nov. 1. But on Oct. 17, Trump characterized the return of sky-high tariffs as not sustainable in a clip of an interview with Fox Business.
(Fox Business via YouTube)
Earlier this year, the U.S. and China agreed to a truce in which Washington paused 145% tariffs on Chinese goods while Beijing pledged to resume the flow of rare-earth magnets. That agreement is set to expire in November.
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The upcoming talks represent the latest efforts to reach an understanding trade after whats already been four rounds of bilateral trade talks. Bessent and He previously negotiated in Madrid, Stockholm, London and Geneva.泭, Malaysias capital, is set to host a summit of the Association of Southeast Asian Nations next week, where many other leaders from around the world are also expected to gather.
I think things have de-escalated, Bessent said Oct. 17. We hope that China will show the respect that we have shown them. And I am confident that President Trump, because of his relationship with President Xi, will be able to get things back on a good course.
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