After two days of high-level US-China trade talks in Malaysia, Washington hinted the world’s two largest economies had found common ground on key issues ranging from tariffs to Beijing’s expanded rare earth export controls. But analysts cautioned the “real test” would come when both sides had to execute a resulting deal.
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Both Chinese and US trade officials described the negotiations in Kuala Lumpur over the weekend as “constructive”, with US Treasury Secretary Scott Bessent adding that the meetings had been “very good”.
In an interview with CBS News on Sunday, Bessent hinted that issues that had arisen during a recent flare-up in tensions – including US threats to impose a 100 per cent additional tariff and China’s plans to expand its rare earth export control regime – were now off the table.
He also indicated the two sides had ironed out details related to a prospective TikTok ownership agreement and that US farmers would be “extremely happy with this deal”, a possible reference to China resuming purchases of US soybeans.
Chinese trade representative Li Chenggang, meanwhile, said the talks had covered a wide range of topics, including export controls, tariffs, the US probe into Chinese shipbuilders and a possible “expansion of bilateral trade”.
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Analysts said both sides were “walking a fine line” ahead of the Asia-Pacific Economic Cooperation (Apec) forum in South Korea – where Presidents Donald Trump and Xi Jinping are expected to meet on Thursday for the first time since the US president’s return to office in January – with both sides now seeking “strategic stability”.