US-China trade talks seen next week as Trump plays down tariffs

[WASHINGTON] The next round of US-China trade talks is likely set for next week, with Treasury Secretary Scott Bessent and Vice-Premier He Lifeng facing the task of negotiating down new escalatory measures between the world’s two largest economies.

Bessent said during a White House event that he will be speaking with He on Friday (Oct 17) evening, around 8.30 pm or 9.00 pm New York time. “He and I, and a delegation, will meet in Malaysia – probably a week from tomorrow, to prepare for the two presidents to meet,” the Treasury chief added.

Bessent’s comments came after US President Donald Trump expressed optimism that talks with Chinese officials could yield an agreement to defuse the crisis that saw the US leader threaten to drastically hike tariffs. Taken together, the remarks signalled an effort by Washington to calm fears of a full-blown trade war with Beijing that could have a seismic effect on the global economy.

“I think we are doing very well. I think we are getting along with China,” Trump said. The US president also indicated that he believed his planned meeting with Chinese President Xi Jinping, set to take place this month in South Korea on the sidelines of the Asia-Pacific Economic Cooperation leaders summit, would go ahead.

Just a week ago, Trump had raised the prospect of cancelling his first in-person meeting with Xi since he returned to the White House, infuriated at his government’s vow to exert broad controls on critical rare-earth elements. He also declared a 100 per cent import surtax on Chinese goods to take effect on Nov 1. But on Friday, Trump characterised the return of sky-high tariffs as “not sustainable” in a clip of an interview with Fox Business.

Earlier this year, the US and China agreed to a truce in which Washington paused 145 per cent tariffs on Chinese goods while Beijing pledge to resume the flow of rare-earth magnets. That agreement is set to expire in November.

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The upcoming talks represent the latest efforts to reach an understanding trade after what’s already been four rounds of bilateral trade talks. Bessent and He previously negotiated in Madrid, Stockholm, London and Geneva. Kuala Lumpur, Malaysia’s capital, is set to host a summit of the Association of South-east Asian Nations next week, where many other leaders from around the world are also expected to gather.

“I think things have de-escalated,” Bessent said on Friday. “We hope that China will show the respect that we have shown them. And I am confident that President Trump, because of his relationship with President Xi, will be able to get things back on a good course.” BLOOMBERG