US-China Trade Negotiations Resume in Malaysia Ahead of Critical Leaders' Summit

The world's two largest economies are working to prevent further intensification of a harmful tariff war.

China and the United States commenced their latest trade negotiations in Malaysia on Saturday, as confirmed by a US Treasury spokesman and Chinese state media, ahead of a highly anticipated summit between their leaders in South Korea next week.

Beijing's commerce ministry had previously announced that Vice Premier He Lifeng would lead a delegation to Malaysia for talks with the United States until Monday.

AFP journalists observed He Lifeng and his entourage entering Merdeka 118 - the world's second-tallest building - where the negotiations are taking place on Saturday.

They passed through the lobby without addressing reporters.

The US delegation utilized a separate entrance.

Building personnel informed AFP that the delegations were meeting on the 92nd floor.

The world's two largest economies are attempting to avoid further escalation of a damaging reciprocal tariff dispute, with US President Donald Trump expected to meet Chinese President Xi Jinping in South Korea next Thursday.

The US president has clearly expressed his hope to finalize a "good" agreement with China and end the trade war, despite previously threatening to cancel the meeting, which will take place on the sidelines of the Asia-Pacific Economic Cooperation summit beginning October 31.

A US Treasury spokesman confirmed on Saturday that the talks in Kuala Lumpur had begun.

China's official Xinhua news agency also reported that the Chinese and US delegations had "convened."

Beijing announced comprehensive controls on the critical rare earths industry earlier this month, prompting Trump to threaten 100 percent tariffs on Chinese imports in retaliation.

The two countries have also started charging arrival fees on each other's ships, triggered by a US "Section 301" investigation that concluded Beijing's dominance in the industry was unreasonable.