US and China hold "very constructive" trade talks ahead of Trump-Xi meeting

The United States and China held “very constructive” trade discussions in Malaysia on Saturday, a US Treasury spokesperson confirmed, as both nations seek to avoid further escalation in their ongoing tariff war.

The talks took place ahead of a high-profile meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea next Thursday.

The spokesperson said that the talks had concluded, describing them as very constructive, and added that they were expected to resume in the morning.

US Treasury Secretary Scott Bessent met with China’s Vice Premier He Lifeng at Merdeka 118, the world’s second-tallest building. The discussions aimed to prevent further damage to the global economy caused by the tit-for-tat tariffs between the two largest economies in the world.

President Trump has expressed his desire to reach a “good” deal with China and end the trade war, despite previously threatening to cancel the South Korea meeting. The summit is set to take place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, starting October 31.

Tensions between the two countries escalated earlier this month when Beijing introduced sweeping controls over the rare earths industry, prompting Trump to threaten 100 percent tariffs on imports from China.

Both countries have also imposed arrival fees on each other’s ships following a US “Section 301” investigation, which found that China’s dominance in the industry was unfair.

The recent talks signal an effort by both sides to de-escalate trade tensions ahead of the leaders’ anticipated meeting in South Korea.