A New Era in Trade is Beginning Ahead of the Trump-Xi Summit

Steps Toward Reconciliation Between Two Superpowers

Before the Trump–Xi summit scheduled for October 30, an important development occurred between delegation from the USA and China. During the discussions, critical issues such as the renewal of the temporary agreement expiring on November 10 and the trade of rare earth elements were on the agenda. These negotiations hold great significance for the future of diplomatic relations between the two countries.

Fifth Round of Negotiations in Malaysia

This preparatory session for the discussions took place on October 25-26 in Kuala Lumpur, the capital of Malaysia. The delegations led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent managed to reach consensus on several items aimed at reducing trade tensions between the two countries. This is recorded as the fifth round of negotiations held since 2019.

Tariff Increases and Rare Earth Elements

China's International Trade Representative Li Qinggang announced that the parties reached a preliminary agreement regarding tariffs as a result of the negotiations. It was noted that this agreement would be submitted to the approval processes of both countries. US Trade Representative Jamieson Greer stated that following intense discussions between the parties, they agreed on a framework agreement to be presented to the two country leaders for evaluation.

China's Controls Over Rare Earth Elements

In recent months, not only did the US increase its customs tariffs, but Beijing also tightened its controls over rare earth elements, leading to heightened tensions between the two countries. This situation once again highlights how critical the balance in the global supply chain is. The meeting between Trump and Xi is viewed as a significant turning point in exploring solutions to these disputes.