Kuala Lumpur, 23 October 2025 — China’s Vice Premier He Lifeng is scheduled to meet senior U.S. officials from 24 to 27 October in Kuala Lumpur for a new round of trade negotiations, amid escalating tensions between the two largest global economies.
The Chinese Commerce Ministry announced the delegation’s visit as part of preparations for the upcoming Association of Southeast Asian Nations (ASEAN) summit hosted in Malaysia, where regional and global trade issues will also be discussed.
What’s on the Agenda
The talks will bring China’s top economic envoy He Lifeng together with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. The discussions are expected to focus heavily on Beijing’s recently expanded export curbs on rare-earth elements and Washington’s response via technology export restrictions.
China’s curbs on rare-earth exports come in reaction to the U.S. adding Chinese companies to its restricted technology access list, a move that disrupted what looked to be a thawing of ties earlier this year.
Why Malaysia
Malaysia serves as a strategic venue for the talks. The timing coincides with the ASEAN summit, offering both countries a neutral regional platform. Kuala Lumpur’s selection underscores Southeast Asia’s growing role in global trade diplomacy and supply-chain realignment amid the U.S.–China competition.
Implications for Asia-Pacific
For Asian economies and investors, the discussions have several noteworthy implications:
- Supply-chain ripple effects: China’s rare-earth controls impact industries reliant on critical minerals, especially electronics and clean-energy equipment. Asian manufacturers should monitor developments closely.
- Trade-policy signals: A meaningful breakthrough could ease tensions and boost market sentiment across the region; continued escalation could disrupt trade flows and raise strategic uncertainty.
- Regional diplomacy boost: Malaysia’s role as host highlights ASEAN’s increasing geopolitical significance. It may accelerate regional trade frameworks or supply-chain diversification away from China-U.S. bilateral dependence.
- Investor caution: Markets may remain volatile in the short term as participants assess whether the talks quell escalation or simply delay confrontation.
What to Watch
- Announcement of outcomes or joint statements after the talks.
- Any adjustment in China’s rare-earth export policy or U.S. responses via tech-export controls.
- Impact on commodity markets and global supply chains, especially in Asia.
- Broader diplomatic developments ahead of the upcoming summit between China’s President Xi Jinping and U.S. President Donald Trump expected in South Korea.
