China-US economic, trade talks to be held in Malaysia

China and the United States will engage in a fresh round of trade talks later this week in Malaysia, in a bid to de-escalate tensions that have been simmering for weeks between the world's two largest economies.

Analysts said that Washington's recent moves — calling for talks while exerting pressure on Beijing — do not build bridges. They called for the US to match its words with deeds and meet China halfway to seek mutually beneficial solutions.

The Ministry of Commerce announced on Thursday that Vice-Premier He Lifeng will lead a delegation to Malaysia from Friday to Monday to hold economic and trade consultations with US representatives, as agreed to by the two countries.

The two sides will engage in consultations on "key issues concerning China-US economic and trade relations", in accordance with the important consensus reached by the two heads of state during their phone calls this year, the ministry added.

The negotiations in Malaysia — the fifth of their kind since May — come at a time when an already-extended 90-day tariff truce is set to expire on Nov 10.

China and the US had made some progress following four rounds of trade talks, which went on to steady bilateral ties and deliver a wave of positive anticipation in global markets. However, Washington's recent moves, reneging on the previous consensus, threaten to undo that hard-won progress, experts said.

The administration of US President Donald Trump has threatened to impose export curbs on "any and all critical software" to China in addition to additional 100 percent tariffs starting on Nov 1. Moreover, the US also started slapping additional port fees on Chinese-built and Chinese-operated ships earlier this month.

Wang Wen, dean of Renmin University of China's Chongyang Institute for Financial Studies, said the current friction stems from a pattern of inconsistency from Washington. "This approach erodes the very trust necessary for any lasting agreement," he added.

Wang said the path forward requires more than just showing up at the negotiation table. It also demands a consistent and good-faith delivery of the commitments made there, he said.

Analysts expect the management of rare earth elements to be an important topic during the upcoming trade talks.

Xu Hongcai, deputy director at the China Association of Policy Science's economic policy commission, said that China has made it very clear on multiple occasions that the country does not impose rare earth export restrictions in the civilian sector. This is a balanced approach that prioritizes both supply chain stability and China's national security.

Chen Wenling, former chief economist at the China Center for International Economic Exchanges, said, "The Chinese position is consistent — we will never initiate a trade war, but we will never shy away from one either."

Experts said the value of the trade talks lies not merely in managing the economic relationship between the two giants, but in providing a predictable external environment for every nation that falls in their orbit.

Thomas Helbling, deputy director of the International Monetary Fund's Asia and Pacific Department, said the IMF hopes that the US and China — and the world at large — will find ways to resolve trade tensions and address underlying disagreements in areas such as non-market-based trade restrictions.

Ouyang Shijia contributed to this story.