As U.S. President Donald Trump and Chinese President Xi Jinping are set to meet at the APEC (Asia-Pacific Economic Cooperation) summit in Busan, Korea, on the 30th, a preliminary bout opened in Malaysia.
According to AP and others, the United States and China held the second day of the fifth high-level trade talks on the 26th local time in the capital, Kuala Lumpur. The talks are effectively the final working stage to coordinate the core agenda to be addressed at the Busan summit. The two countries have recently raised tensions again, trading China's rare earth export controls and the United States' threat of a 100% additional tariff.
Summarizing Xinhua, Reuters, and other foreign media, the talks began on the 25th and resumed on the morning of the 26th. The venue was reportedly a conference room on the 92nd floor of the Merdeka 118 tower in Kuala Lumpur. The Chinese delegation was led by Vice Premier He Lifeng of the State Council. Vice Minister Li Chenggang of the Ministry of Commerce was also present. On the U.S. side, Treasury Minister Scott Bessent and Jamieson Greer, the United States Trade Representative (USTR), sat across the table. Earlier, China's Ministry of Commerce officially announced that Vice Premier He would visit Malaysia from the 24th to the 27th. Minister Bessent likewise confirmed that the delegations would meet in Malaysia to prepare for the summit.
The talks are being held at the same venue and during the same period as the Association of Southeast Asian Nations (ASEAN) summit. ASEAN is an economic and security cooperation body of 10 Southeast Asian countries (11 including Timor-Leste from the 26th). President Trump arrived in Kuala Lumpur on the 26th to attend the ASEAN summit schedule. It is the first time in eight years since 2017 that President Trump has personally attended the ASEAN summit, which is multilateral in nature. The U.S.-China trade talks are effectively taking place on the sidelines of this ASEAN summit. In Malaysia, President Trump will hold a bilateral meeting with Prime Minister Anwar Ibrahim. He is also set to preside over a signing ceremony for the "Kuala Lumpur Agreement" to end the border dispute between Thailand and Cambodia.
China and the United States have been waging a cold war since the launch of the Trump administration's second term in April. They exchanged measures imposing high tariffs on each other and controlling exports of key technologies. After briefly declaring a "tariff truce" to catch their breath, tensions have flared again recently. This month, China pulled out an export control card on critical minerals, including rare earths. Rare earths are strategic resources essential for producing electronics such as smartphones and computers, as well as advanced weapons. China said the move was a response to the United States expanding export controls on advanced technologies, including semiconductors. In turn, President Trump called it a "shocking and surprise move" and said he would impose a 100% additional tariff on all Chinese imports starting Nov. 1.
To avoid a clash, the two countries activated working-level diplomatic channels in May. This is the fifth high-level meeting. The two sides met in Geneva, Switzerland, in May; London, United Kingdom, in June; Stockholm, Sweden, in July; and Madrid, Spain, in September. Working-level officials kept moving venues to discuss sticking points. This fifth meeting is the final coordination step for the "Busan summit."
The two leaders will meet in Busan on the 30th, when the APEC summit opens. APEC is a consultative body aimed at economic cooperation in the Asia-Pacific region. The White House also officially confirmed the summit yesterday, the 25th, saying it is "intended to ease tensions and put negotiations back on track."
Aboard Air Force One, the presidential plane, as he departs on an Asia tour, President Trump said, "We have a lot to discuss with President Xi, and he also has a lot to talk about with us," adding, "We look forward to a good meeting." President Trump also said a meeting with North Korea's Kim Jong-un, chairman of the State Affairs Commission, is "open" during this Asia tour.