Top US and Chinese officials are meeting in Kuala Lumpur to prevent a trade war escalation. The talks aim to keep next week’s Trump-Xi summit on track. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng. The meeting is the fifth since May, following previous talks in Europe.
The discussions focus on China’s control over rare earth minerals and magnets. These materials are vital for electric vehicles, semiconductors, and weapons systems. China recently imposed strict export controls, sparking US threats of 100% tariffs. Bessent and Greer criticized the move as a “global supply chain power grab.” The US may retaliate with export restrictions on software, laptops, and jet engines.
Read more: Trump administration mulls sweeping export curbs on China
Earlier negotiations had eased tensions temporarily. In May, a 90-day truce reduced tariffs to 55% in the US and 10% in China. Talks in London, Stockholm, and Madrid refined agreements, including TikTok’s US ownership transfer. However, tensions flared after the US expanded its export blacklist, prompting China’s new rare earth restrictions.
Analysts say the Malaysian talks aim to restore prior supply flows. Failure could cancel the Trump-Xi meeting during the Asia Pacific Economic Cooperation Summit. Experts expect tactical compromises: the US may hold off on extreme tariffs, and China may slightly ease rare earth export limits. Both sides also hope to resume US soybean purchases.
Read more: U.S.-China Trade Talks Begin Today Amid High-Stakes Global Concerns
The talks are unlikely to resolve broader US concerns about China’s economic model. Core issues include overproduction and limited consumption within China. Analysts note the immediate goal is practical: maintain trade, keep materials flowing, and protect political and economic interests on both sides.