A significant breakthrough has been achieved in the tense trade war between the world’s two largest economies, the US and China, which has been ongoing since 2019. Following high-level negotiations in Malaysia, both sides have agreed to de-escalate the costly conflict.
These pivotal talks took place in Kuala Lumpur, Malaysia, on the sidelines of the ASEAN summit. Officials from both Washington and Beijing have confirmed the positive outcome.
Following this development, all eyes are now on Gyeongju, South Korea, where a critical meeting is scheduled for Thursday between Chinese President Xi Jinping and U.S. President Donald Trump. Global observers are viewing this summit as a potential turning point for international trade, with strong expectations that the two leaders will sign a formal agreement.
U.S. Treasury Secretary Scott Bessent informed the media that a framework was agreed upon in Kuala Lumpur, setting the stage for the meeting in South Korea. He expressed hope that both sides could reach a deal that avoids drastic 100% tariffs, possibly by deferring controls on sensitive issues like rare earth minerals.
Meanwhile, Chinese Vice Premier He Lifeng, who participated in the talks, also confirmed that an agreement on the “basic points” has been reached and is now undergoing internal approval processes within both countries.
