As President Trump departed for his trip to Asia, the United States Secretary of the Treasury, Steven Mnuchin, and Chinese Vice Premier, He Lifeng, each led their respective economic and trade teams in Kuala Lumpur, Malaysia starting on Saturday (October 25th) with the aim of easing the trade tension between the U.S. and China. The two sides have concluded their negotiations for the first day. A spokesperson from the U.S. Treasury Department stated that the talks were “very constructive.”
President Trump mentioned the potential meeting with Chinese President Xi Jinping while en route to Asia, stating that there are many issues that need to be discussed between the U.S. and China, and both sides need to make concessions in terms of trade.
The latest round of negotiations took place at the Merdeka 118 Tower in Kuala Lumpur, the second tallest building in the world. The U.S. Treasury Department spokesperson briefly introduced the talks and indicated that negotiations would resume on Sunday, but did not disclose further details.
“These talks have been very constructive, and we expect the discussions to resume on Sunday morning,” said the Treasury Department spokesperson.
The first day of talks lasted for 5 and a half hours, and the Chinese representatives have not made any public statements yet. Apart from the lead negotiator He Lifeng, the Chinese delegation also included Chief Trade Negotiator Li Chenggang and Deputy Minister of Finance Liao Min. The U.S. team mainly consisted of Treasury Secretary Mnuchin and Trade Representative Lighthizer.
The governments of Malaysia, the U.S., and China did not provide details about the meeting.
The discussions between Mnuchin, Lighthizer, and He Lifeng aim to de-escalate the ongoing trade war between the two countries and pave the way for the Trump-Xi meeting scheduled for next Thursday (October 30th) in South Korea. These talks are crucial and may involve negotiations on issues such as rare earths, tariffs, technology controls, and China’s purchase of American soybeans.
Minutes before the start of the Saturday talks, President Trump left Washington, beginning his tour of Asia. He outlined several key points for his potential meeting with Xi Jinping, including discussions on soybeans and Taiwan. However, he mentioned that there are currently no plans to visit Taiwan.
The President also stated that he would use the Trump-Xi meeting as an opportunity to push for the release of Hong Kong media tycoon Jimmy Lai. Previously, several members of Congress urged him to assist in Lai’s release. Lai’s case has become one of the most prominent examples of Chinese suppression of human rights and freedoms in Hong Kong.
Trump also mentioned seeking Beijing’s assistance in handling the Russia issue. The Trump administration is working to urge Russian President Putin to come to the negotiation table to end the conflict in Ukraine.
On Air Force One, Trump said, “There are a lot of things that we have to discuss.”
“They (the Chinese) have to make concessions. I think we will too. We are about to impose a 157% tariff on them. I think that’s unsustainable for them, they want to lower the tariffs and we also want them to make concessions in some areas,” Trump said.
According to Reuters, Josh Lipsky, the Chair of International Economics at the Atlantic Council in Washington, stated that Mnuchin, Lighthizer, and He Lifeng must first find a way to alleviate their differences on U.S. technology export restrictions and Chinese rare earth controls.
“I’m not sure if the Chinese will agree to that. That’s their main chip,” Lipsky said.
The U.S.-China trade war has escalated rapidly in recent days. On October 9th, China announced an expansion of its export controls on rare earth products, which angered President Trump. He subsequently announced that starting from November 1st, there would be an additional 100% tariff on Chinese goods, and consideration of export restrictions on critical U.S. software.
Whether U.S. and Chinese trade officials can find a solution to de-escalate the trade war before the Trump-Xi meeting is eagerly anticipated.