In Asia, Trump seals trade & peace deals with Thailand, Cambodia, Malaysia; Greer says China moving toward ‘agreement’

US President Donald Trump co-signed a ceasefire deal between Thailand and Cambodia in Malaysia during the initial stop of his Asia tour, which is anticipated to conclude with discussions involving Chinese leader Xi Jinping, AFP reported

The ceasefire was signed by Thai Prime Minister Anutin Charnvirakul, Cambodian Prime Minister Hun Manet, Trump and Malaysian Prime Minister Anwar Ibrahim. As per the agreement, 18 Cambodian prisoners of war will be released.

On Sunday, Trump and Anwar Ibrahim signed a trade agreement and a critical minerals pact, as the US aims to enhance trade in the Southeast.

Malaysia “is going to be modifying its tariffs and non-tariff barriers, and we intend to have a lot more trade,” US Trade Representative Jamieson Greer said.

Meanwhile, the second day of trade discussions between the US and China was setting the stage for a “productive meeting” between Donald Trump and Xi Jinping, reported Reuters, citing Washington's chief trade negotiator in Kuala Lumpur on Sunday. This has increased optimism about reaching an agreement between the world's largest economies.

US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng during the ASEAN summit for the fifth in-person discussion since May, as both sides aim to reduce tensions in the trade war.

“I think that we're getting to a spot where the leaders will have a very productive meeting,” Greer was quoted as saying. China's top trade negotiator, Li Chenggang, also participated in the discussions.

When questioned about the discussion of rare earths during the talks that began on Saturday, Greer responded that various topics were covered, including the extension of the trade truce.

Both sides aim to prevent their trade conflict from escalating further after Trump threatened to impose new 100% tariffs on Chinese goods and other trade restrictions beginning November 1. This move is in response to China's significantly increased export controls on rare earth magnets and minerals.

Trump-Xi meet

Trump arrived in the Malaysian capital on Sunday morning for the summit, marking the start of his five-day Asia tour, which is expected to conclude with a face-to-face meeting with Xi in South Korea.

A successful resolution in Kuala Lumpur could clear obstacles, enabling the high-stakes meeting scheduled for October 30 to proceed smoothly.

Although the White House has officially announced the much-anticipated Trump-Xi talks, Beijing has not yet confirmed that the two leaders will meet.

What issues are in focus?

Trump's discussions with Xi will likely include soybean purchases, concerns about Taiwan, which Beijing considers its territory and the release of Hong Kong media tycoon Jimmy Lai.

The arrest of the founder of the now-defunct pro-democracy newspaper Apple Daily has emerged as the most prominent example of China's crackdown on rights and freedoms in the Asian financial centre, the report said.

Trump also stated that he would request China's assistance in Washington's negotiations with Russia, as Moscow's conflict in Ukraine nears its fourth year.

US-China tensions

Tensions between the US and China escalated in recent weeks after a fragile trade truce, first reached during their first trade talks in Geneva in May and extended in August, failed to stop either side from imposing additional sanctions, export restrictions, and threats of stronger retaliatory actions.

The upcoming talks are expected to focus on China's increased restrictions on rare earths exports, which have led to a global shortage, prompting the Trump administration to consider restricting exports of "critical software" to China, Reuters reported.

(With inputs from agencies.)