US China Trade Talks Resume in Kuala Lumpur Amid Tariff Threat

• Top officials from the United States and China met in Kuala Lumpur on Saturday to avert a potential escalation in their ongoing trade dispute. The meeting, held on the sidelines of the ASEAN Summit, comes ahead of US President Donald Trump’s planned 155% tariff hike on Chinese imports starting November 1.

High-Level Dialogue:
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with China’s Vice Premier He Lifeng and top negotiator Li Chenggang to stabilize a fragile truce strained by new trade measures. Washington recently expanded its export blacklist to cover thousands of Chinese firms, while Beijing tightened export controls on rare earth minerals.

APEC Summit Outlook:
The talks are expected to lay the groundwork for a possible Trump–Xi meeting at the upcoming APEC Summit in South Korea. Key issues on the agenda include tariffs, technology export restrictions, and agricultural trade. Trump also plans to raise political topics such as Taiwan and the detention of Hong Kong media tycoon Jimmy Lai.

Core Disputes:
Rare earth export controls and US technology restrictions remain the main points of contention. Analysts warn that failure to reach a compromise could trigger the reimposition of triple-digit tariffs and disrupt global supply chains.

Exam Facts:

• Current average US tariff on Chinese imports: 55%

• China’s rare earth exports now require special licensing

• Next Trump–Xi meeting likely at APEC Summit, South Korea

• Rare earths are vital for electronics, EVs, and defence manufacturing

Truce Expiry Nears:
The temporary trade truce, extended in London and Stockholm, expires on November 10 . Rising tensions over export restrictions and US investigations into China’s compliance with the 2020 trade deal have raised fears of renewed tariff escalation.