In a significant move to mitigate tensions between the two largest economies in the world, China and the United States are scheduled to engage in a new round of trade talks next week. This initiative aims to prevent another damaging tit-for-tat tariff conflict, as President Donald Trump has described the current US tariffs on Chinese goods as "unsustainable."
US Treasury Secretary Scott Bessent announced on Friday that he anticipates meeting with Chinese Vice Premier He Lifeng in Malaysia in the upcoming week. This meeting is a crucial part of ongoing discussions to address trade disparities and enhance economic cooperation between the two nations.
During a recent interview with Fox Business, President Trump spoke about the impending meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit, which is set to take place in South Korea this November. When questioned about the sustainability of a staggering 157% cumulative tariff on Chinese products, Trump acknowledged the potential ramifications for the US economy. He stated, "It's not sustainable, but that's what the number is... They forced me to do that."
In a related development, China recently tightened its export controls on the critical rare earths industry, a move that has drawn sharp criticism from the US. In retaliation, Trump has threatened to impose a staggering 100 percent tariff on imports from China. Earlier in the week, both Bessent and Greer condemned China’s restrictions, labeling them as a significant threat to global supply chains. The dominance of China in rare-earth elements, which are vital for technology manufacturing, has raised alarms among US officials.
Chinese state media outlet Xinhua reported that Bessent and He had a "candid, in-depth and constructive" video call on Saturday morning. Both sides reportedly agreed to convene for a new round of trade negotiations as soon as possible. The call also included US Trade Representative Jamieson Greer, who has played a pivotal role in these discussions.
Bessent took to social media platform X to describe the call as frank and detailed, confirming that the two senior officials would meet in person next week to continue their dialogue. Over the past six months, the US and China have engaged in negotiations across four European cities, striving to reach a tariff truce that has successfully reduced duties from previously damaging triple-digit levels. This agreement is set to conclude on November 10.
As the US and China prepare for these critical trade talks, the outcome will be pivotal in shaping the future of their economic relationship. With both nations facing significant pressures, the discussions in Malaysia could either pave the way for improved trade relations or escalate tensions further. Stakeholders around the world will be watching closely as the two powers seek to navigate this complex landscape.
