There is a possible sigh of relief after months of tit-for-tat tariffs and simmering trade tensions between the United States of America (USA) and the People’s Republic of China.
The two world superpowers, according to Reuters, may be inching closer to a temporary truce in their long-running trade war. The latest round of discussions between both countries in Kuala Lumpur over the weekend has sparked optimism. However, some experts are laid back fearing that any peace could be fragile and short-lived.
Reuters reports that U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit for what has been described as a “constructive and forward-looking” round of talks.
The meeting marks the fifth in-person engagement between both sides since May, as Washington and Beijing attempt to ease a dispute that has strained global supply chains and rattled financial markets.
Speaking briefly to reporters after the meeting, Greer said the discussions were paving the way for “a very productive meeting” between President Donald Trump and President Xi Jinping, expected to take place later this week in South Korea.
“I think that we’re getting to a spot where the leaders will have a very productive meeting,” Greer told reporters, hinting at potential progress on key sticking points such as tariffs and export controls.
The talks come amid heightened tension following Trump’s threat to impose new 100% tariffs on Chinese goods starting November 1, in response to Beijing’s expanded export controls on rare earth minerals which is a key components in electronics, defense, and clean energy technologies.
Rare earths are China’s strategic leverage in global manufacturing, and any disruption in their supply could send shockwaves across industries worldwide.
Many analysts believe a breakthrough truce in these talks could bring relief to businesses and economies that have been caught in the crossfire of the world’s two largest economies. A de-escalation would likely ease inflationary pressures, stabilize commodity markets, and restore confidence in global trade flows.
Some analysts also caution that unresolved political tensions, particularly over Taiwan, the war in Ukraine, and human rights concerns in Hong Kong, could easily derail the fragile progress.
