China-US trade talks kick off in Kuala Lumpur ahead of Trump-Xi meet: Tariffs, rare earths, soybeans in focus

US and Chinese officials began a fresh round of negotiations to de-escalate tensions between the two largest economies ahead of US President Donald Trump's and Chinese President Xi Jinping's scheduled meeting next week.

Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent have initiated a new round of trade negotiations in Kuala Lumpur, preparing for a potential meeting between the leaders of the US and China, Bloomberg reported.

The officials are expected to discuss issues crucial to China-US economic and trade relations, according to reports citing China's Ministry of Commerce.

This meeting in Kuala Lumpur represents the fifth in-person discussion between He and Bessent amid growing trade tensions since April.

Focus on soybeans, tariffs and rare earth minerals

Key areas such as soybeans, tariffs and rare earth minerals have been a concern between the US and China.

“When we finish our meetings in South Korea,” Trump said, referring to a planned summit with Xi before or during the Asia-Pacific Economic Cooperation (Apec) forum this month, “China and I will have a really fair and really great trade deal together. I want them to buy soybeans.

“I think we’re going to end up having a fantastic deal with China. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world.”

US-China tensions escalated this month due to a series of economic sanctions, export restrictions, and Trump’s threat of 100% tariffs.

Beijing announced a significant expansion of its export controls on rare earth elements, essential raw materials for many high-tech products. This move was seen by many as a response to the US broadening its Entity List, which flags foreign entities that Washington considers a national security or foreign policy threat.

“All options are on the table,” Bessent said in an interview with Fox Business Network. He hoped both sides would resolve some of their differences and the presidents could “enter their talks on a more positive note.”

“It would be a shame to waste their first in-person meeting during President Trump’s second term trying to get past some problems, rather than moving towards a more constructive dialogue between the US and China,” he said.

“We have a lot to talk…” says Trump ahead of meeting with Xi

Speaking on the upcoming meeting with Xi, Trump told reporters, "...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."

He added, “I will be talking about Taiwan. I won't go there, but I will be talking about it. Lot of respect for Taiwan…”

Trump-Xi meeting

The White House confirmed this week that Trump will meet Xi Jinping next Thursday in South Korea after addressing the Asia-Pacific Economic Cooperation (APEC) CEO Summit.