Key Points
- High-level U.S.-China trade talks in Malaysia have been “productive.” The positive tone is raising hopes for a deal to de-escalate the trade war.
- The talks are a crucial setup for a meeting between President Trump and President Xi later this month.
- The main issue is finding a way to avoid a massive new round of U.S. tariffs.
- The two sides are discussing a range of topics, including rare earths and extending the current tariff truce.
High-level trade talks between the U.S. and China are paving the way for a “very productive meeting” between President Donald Trump and President Xi Jinping, Washington’s top trade envoy said on Sunday. The positive comments from U.S. Trade Representative Jamieson Greer are raising hopes that the two sides might be on the verge of a deal to de-escalate their trade war.
Greer and Treasury Secretary Scott Bessent have been in Kuala Lumpur, Malaysia, for two days of intense discussions with their Chinese counterparts. The talks are a crucial prelude to the highly anticipated meeting between Trump and Xi, scheduled to take place in South Korea later this month.
“I think that we’re getting to a spot where the leaders will have a very productive meeting,” Greer said.
The main goal of the talks is to find a way to avert a major escalation of the trade war. President Trump has threatened to slap a new 100% tariff on Chinese goods starting on November 1 if Beijing doesn’t back down from its new export controls on rare earth materials.
While Greer didn’t give away many details, he said the talks covered a broad range of topics, including the possibility of extending the current tariff truce. A positive outcome in Kuala Lumpur would be a major step toward a breakthrough when Trump and Xi finally meet face to face.
