China, US trade talks start in Kuala Lumpur ahead of possible Xi-Trump summit

Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent have started a new round of trade talks in Kuala Lumpur, paving the way for a possible meeting between the presidents of the world’s two largest economies.

The two sides are expected to discuss issues crucial to China-US economic and trade relations, China’s Ministry of Commerce confirmed on Thursday.

The meeting in the Malaysian capital marks the fifth face-to-face meeting between He and Bessent since US President Donald Trump escalated his trade war in April.

Bilateral relations between the two global powers have been volatile in recent weeks, but the talks – following a video call between He and Bessent a week earlier – could open the door to a potential de-escalation.

Tensions flared after October 9, when Beijing announced further export controls on rare earth elements – minerals vital to the production of many hi-tech goods, including those in the defence industry. The move was widely seen as retaliation for Washington’s expanded entity list in late September.

Trump swiftly responded with a threat to increase tariffs on Chinese goods by an additional 100 per cent, starting on November 1. Meanwhile, a temporary trade truce between the two countries is set to expire next month.