US-China trade talks in Malaysia 'very constructive'

The United States and China conducted "very constructive" trade talks in Malaysia on Saturday, a US Treasury spokesman said, ahead of a highly anticipated meeting of their leaders in South Korea next week.

"Today's talks have concluded. They have been very constructive, and we expect them to resume in the morning," the spokesman told AFP.

US Treasury Secretary Scott Bessent met with China's Vice Premier He Lifeng at Merdeka 118- the world's second-tallest building.

The world's two biggest economies are seeking to avoid further escalating a damaging tit-for-tat tariff war, with US President Donald Trump expected to meet his Chinese counterpart Xi Jinping, in South Korea next Thursday (30 Oct).

The US president has made it clear he hopes to seal a "good" deal with China and end the trade war, even though he previously threatened to cancel the meeting, held on the sidelines of the Asia-Pacific Economic Cooperation summit, starting 31 October.

Beijing announced this month sweeping controls on the critical rare earths industry, prompting Trump to threaten 100% tariffs on imports from China in retaliation.

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