U.S. Treasury Secretary Scott Bessent announced plans to meet with Chinese Vice Premier He Lifeng next week in Malaysia, aiming to prevent an escalation of tariffs on Chinese goods. Bessent made the announcement during a White House cabinet meeting and confirmed it following a video call with He. “We engaged in frank and detailed discussions regarding trade between the United States and China,” Bessent noted on X, indicating the importance of the upcoming in-person meeting.
The two officials previously held four meetings across Europe, leading to a tariff truce that reduced duties from triple-digit highs. However, that agreement is set to expire on November 10. The choice of Malaysia as the meeting location is significant, as it is a major Southeast Asian trading partner for both countries, currently facing a 19% tariff on its exports to the U.S. Additionally, Malaysia is threatened with a 100% tariff on semiconductors and electronic devices following a U.S. national security review.
Tensions have been heightened by disputes over China’s recent export restrictions on rare-earth minerals and magnets. President Trump attributed the current trade impasse to these measures, warning of a potential 100% tariff on Chinese imports starting November 1 unless the restrictions are lifted. “It’s not sustainable, but that’s what the number is,” Trump stated on Fox Business Network, emphasizing that these tariffs were a response to China’s actions.
In conjunction with trade discussions, Trump has indicated a willingness to introduce new U.S. export controls on critical software. Bessent and U.S. Trade Representative Jamieson Greer have criticized China’s restrictions as detrimental to global supply chains. Trump also confirmed plans to meet with Chinese President Xi Jinping in South Korea in two weeks, expressing hope for a fair resolution. “I think we’re going to be fine with China, but we have to have a fair deal,” he mentioned.
While the tone appears softer, with Trump expressing a desire for dialogue, concerns linger in financial markets. U.S. stock prices fluctuated amid wavering confidence tied to Trump’s reinstatement of steep tariffs and rising credit concerns among regional banks.
As the tensions mount, the World Trade Organization (WTO) has urged both the U.S. and China to de-escalate their trade conflicts. WTO Director-General Ngozi Okonjo-Iweala warned that a continued decoupling between the two largest economies could significantly reduce global economic output. She has been in touch with officials from both countries to encourage dialogue.
Bessent has taken aim at China’s approach to trade, urging the IMF and World Bank to scrutinize China’s economic policies, which U.S. analysts say contribute to overcapacity and an influx of cheap goods in global markets. Conversely, China’s Commerce Ministry has accused the U.S. of undermining the multilateral trading system established post-2025, signaling its intention to pursue dispute settlement actions at the WTO if necessary.
Bessent earlier criticized one of He’s aides as “unhinged” in their dealings, a remark that China has rebutted as a distortion of facts, highlighting the continuing tensions ahead of crucial negotiations.
Original Source: https://www.cnbc.com/2025/10/18/bessent-chinese-vice-premier-to-meet-to-try-to-defuse-us-tariff-hike-.html
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Publish Date: 2025-10-18 12:10:00
