US-China trade talks planned next week in Malaysia as Trump plays down tariffs
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US Treasury Secretary Scott Bessent sayid tensions between the US and China over trade “have de-escalated”.
PHOTO: AFP
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WASHINGTON – The next round of US-China trade talks is set for next week, with US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng facing the task of negotiating down new escalatory measures between the world’s two largest economies.
Mr Bessent said he spoke virtually with Mr He late on Oct 17.
The Treasury chief earlier described the discussions with Mr He as “frank and detailed” and reaffirmed plans to meet in person next week.
US Trade Representative Jamieson Greer also took part in the online talks.
“He and I, and a delegation, will meet in Malaysia, probably a week from tomorrow, to prepare for the two presidents to meet,” Mr Bessent said earlier at a White House event.
China’s state-owned Xinhua news agency reported the two sides had a frank, in-depth and constructive exchange of views on important issues in bilateral economic and trade relations.
Mr Bessent’s comments came after US President Donald Trump expressed optimism that talks with Chinese officials could yield an agreement to defuse the crisis that saw Mr Trump threaten to drastically hike tariffs.
Taken together, the remarks signalled 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 we’re doing very well. I think we’re getting along with China,” Mr Trump said.
He also indicated that he believed his planned meeting with Chinese President Xi Jinping, set to take place in October in South Korea on the sidelines of the Asia-Pacific Economic Cooperation leaders summit, would go ahead.
Just a week ago, Mr Trump raised the prospect of cancelling his first in-person meeting with Mr Xi since he returned to the White House, infuriated at the Chinese government’s vow to exert broad controls on critical rare earth elements.
He also declared a 100 per cent surtax
But on Oct 17, Mr Trump characterised the return of sky-high tariffs as “not sustainable”
Earlier in 2025, the US and China agreed to a truce
The upcoming talks represent the latest efforts to reach an understanding on trade after what has already been four rounds of bilateral trade talks.
Mr Bessent and Mr He previously negotiated in Madrid, Stockholm, London and Geneva.
Kuala Lumpur is set to host the Asean summit next week, where many other leaders from around the world are also expected to gather.
“I think things have de-escalated,” Mr Bessent said on 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.” BLOOMBERG
