China and the United States have begun talks in Kuala Lumpur, Malaysia on Saturday to prevent further escalation of their trade war. The discussions aimed to ensure that a meeting occurs next week between US President Donald Trump and Chinese President Xi Jinping.

US and China Hold Crucial Talks in Kuala Lumpur

According to The Sun, discussions taking place alongside the Association of Southeast Asian Nations (ASEAN) summit aim to outline the next steps after US President Donald Trump announced plans for new 100% tariffs on Chinese goods. The proposed measures, set to take effect on November 1, are intended as retaliation for China’s broadened export restrictions on rare earth magnets and minerals. In response, the United States has also expanded its export blacklist to include thousands more Chinese companies.

“These talks on the sidelines of the Association of Southeast Asian Nations summit will chart a path forward after Trump threatened new 100% tariffs on Chinese goods,” The Sun reported. “These developments have disrupted a delicate trade truce crafted by US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng,” it added.

Reportedly, China’s top trade negotiator Li Chenggang is also participating in the current talks. The Malaysian government and both sides have provided few details about the meeting or any plans to brief the media about the outcomes. The officials will try to pave the way for Trump and Xi to meet next Thursday at an Asia-Pacific Economic Cooperation summit in South Korea. “This high-stakes conversation could revolve around interim relief on tariffs, technology controls and Chinese purchases of US soybeans,” The Sun reported.

Meanwhile, moments before the talks started, Trump stated he would like to discuss farmers when he sits down with Xi. He said, “I will bring up Taiwan during my Asian trip though I have no plans to visit there yet.”