Senior economic officials from the United States and China wrapped up the first day of trade discussions in Kuala Lumpur on Saturday, in an effort to ease tensions between the world’s two largest economies.
A spokesperson for the U.S. Treasury Department described the meetings as “very constructive,” signaling a more cooperative tone after weeks of escalating friction.
The talks are taking place on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit and are expected to lay the groundwork for a potential meeting next week between U.S. President Donald Trump and Chinese President Xi Jinping, Reuters reported.
Both sides are seeking to prevent further escalation of the trade war, following Trump’s threat to impose new tariffs of up to 100% on Chinese goods and introduce other restrictive measures set to take effect on November 1.
According to the U.S. administration, these tariffs would be a response to Beijing’s new export controls on magnets and rare earth minerals — critical components for the tech industry.
Diplomats from both nations emphasized that this weekend’s talks present an opportunity to stabilize economic relations and establish conditions for direct political dialogue between the two leaders.
