US-China trade negotiations started in Malaysia.

New Era of Trade Tensions

The trade tensions between the US and China have now entered a new phase. The process, which has escalated with reciprocal tariff increases, continues with new negotiations starting in Malaysia's capital, Kuala Lumpur. According to Xinhua, delegations led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent have come together for the 5th round of talks.

Negotiation Timeline

These negotiations are an extension of the discussions previously undertaken. Earlier meetings took place in Geneva in May, London in June, Stockholm in July, and Madrid in September, maintaining the continuity of dialogue between the parties. Now, all eyes are on Malaysia for this critical meeting where the two countries' economic and trade issues will be discussed.

Trump and Xi's Critical Meeting

These negotiations are a preparatory step ahead of the much-anticipated meeting between US President Donald Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) Summit to be held in South Korea on October 30. During this highly awaited meeting, the unresolved issues between the two countries will be addressed.

Trade Showdown and Its Consequences

In recent months, the tension between Washington and Beijing due to tariff increases and restrictions in the technology sector has reached significant thresholds. On April 2, Trump announced additional tariffs on trade partners, including China. This step turned into a showdown that escalated with China's retaliation. The US raised its tariffs on China to as high as 145%, while China began imposing an additional tax of 125% on US products.

As a result of the negotiations, significant reductions in the specified customs duties were recorded by May 14. The US reduced the tariff on Chinese goods from 145% to 30%, while China decided to lower the tariff on US products from 125% to 10%. Immediately afterward, temporary agreements were also reached between the parties in other negotiations.

Impact on the Future

The meeting between Trump and Xi is critically important for trade relations between the two countries. The steps taken to resolve disagreements will determine future economic relations. Therefore, the agreements made during the negotiations in Malaysia and before the APEC Summit carry great significance for the balance of global trade.