Will Trump, Xi break deadlock? US, China set for high-stakes talks

Will Trump, Xi find common ground to break deadlock? US, China set for high-stakes talks

As United States President Donald Trump begins a five-day trip to Japan, Malaysia and South Korea, his team is set to meet Chinese officials in Kuala Lumpur to lay the groundwork for a possible meeting between Donald Trump and his Chinese counterpart Xi Jinping and to seek ways to defuse rising trade tensions.

The talks, to be held on the sidelines of the Association of Southeast Asian Nations summit, aim to chart a path forward after President Trump threatened to impose 100 per cent tariffs on Chinese goods and additional trade restrictions from November 1, in response to China's expanded export controls on rare earth magnets and minerals.

The three US officials who would be meeting the Chinese officials are US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng.

Speaking about the meeting between Xi and Trump, Josh Lipsky, international economics chair at the Atlantic Council in Washington, told Reuters that it cannot happen without an agreement between the two countries first.

Also Read | No Trump-Kim meeting planned during APEC tour, says US official

“The meeting can't happen without an agreement that they can return to this intermediate ceasefire that we've had over the summer,” Lipsky said.

He said the meeting would also talk about reversing China's decision to extend control over rare earth controls. “I'm not sure the Chinese can agree to that. It's the primary leverage that they have,” Lipsky said.

Eaelier, Donald Trump had said that the 100 per cent tariffs that he threatens on China were “not sustainable”.

The US President also blamed China for the latest setback in trade talks, citing Beijing's move to tighten control over its rare earth exports.

“I think we're going to be fine with China, but we have to have a fair deal. It's got to be fair,” Donald Trump said.

When asked if such high tariffs on Chinese imports were sustainable, Donald Trump said they were not. Also Read | Trump, China's Xi are due to meet—but will they? Why it matters for rare earth stocks

“It's not sustainable, but that's what the number is,” Donald Trump said in an interview, and added, “They forced me to do that.”

While a meeting appears likely amid ongoing trade and tariff tensions, an interim deal could offer both countries a pathway toward easing the standoff.

(With Reuters inputs)

Source: LiveMint
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