US-China Trade Negotiations Show Progress Ahead of Critical Trump-Xi Summit in South Korea

US President Donald Trump is anticipated to meet with Chinese President Xi Jinping in South Korea during the upcoming week.

The United States and China engaged in "very constructive" trade discussions in Malaysia on Saturday, according to a US Treasury spokesperson, ahead of a highly anticipated summit between their leaders scheduled in South Korea next week.

"Today's discussions have concluded. They have been very constructive, and we anticipate they will resume tomorrow morning," the spokesperson informed AFP.

US Treasury Secretary Scott Bessent held talks with China's Vice Premier He Lifeng at Merdeka 118, which stands as the second-tallest building globally.

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

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

Beijing recently announced comprehensive controls on the crucial rare earths sector, prompting Trump to threaten 100 percent tariffs on Chinese imports in response.

The two nations have also initiated charging fees on each other's vessels, triggered by a US "Section 301" investigation that determined Beijing's dominance in the industry was unreasonable.