US, China seek to avoid trade war escalation

 
Top economic officials from the US and China ended their first day of talks in Kuala Lumpur on Saturday, with a Treasury spokesperson describing them as "very constructive".

The world's two largest economies are looking to avert an escalation of their trade war and ensure that a meeting happens next week between US President Donald Trump and Chinese President Xi Jinping. The talks on the sidelines of the Association of Southeast Asian Nations summit will chart a path forward after Trump threatened new 100 percent tariffs on Chinese goods and other trade curbs starting on Nov 1, in retaliation for China's vastly expanded export controls on rare earth magnets and minerals, Reuters reports.

The recent actions, which also include an expanded US export blacklist that covers thousands more Chinese firms, have disrupted a delicate trade truce crafted by US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng over four previous meetings since May.

He smiled and waved to reporters but did not comment as the Chinese delegation left the venue for the talks, Kuala Lumpur's Merdeka 118 tower, the second-tallest building in the world.

China's top trade negotiator Li Chenggang is also participating in the talks. A Reuters witness saw Li arriving alongside He earlier in the day.
About the talks, a Treasury spokesperson said: "They have been very constructive, and we expect them to resume in the morning".

The Malaysian government and the US and Chinese sides have provided few details about the meeting or any plans to brief the media about outcomes.

The three officials will try to pave the way for Trump and Xi to meet next Thursday at an Asia-Pacific Economic Cooperation summit in South Korea, a high-stakes conversation that could revolve around some interim relief on tariffs, technology controls and Chinese purchases of US soybeans.

Minutes before the talks started, Trump left Washington for his tour of Asia and laid out several talking points for the meeting with Xi.

He said farmers, hit by a Chinese freeze on US soybean purchases, and the democratic island of Taiwan, which China claims as its own territory, would be on the list of topics discussed. Trump added he does not have any plans to visit Taiwan.

He also flagged the release of jailed Hong Kong media tycoon Jimmy Lai, whose case has become the most high-profile example of China's crackdown on rights and freedoms in the Asian financial hub.

"We have a lot to talk about with President Xi, and he has a lot to talk about with us. I think we'll have a good meeting," Trump said.

Trump left Washington on Friday night for a five-day trip to Malaysia, Japan and South Korea, his first to the region and longest journey abroad since taking office in January.