KEY POINTS
- Chinese, US negotiators meet in Kuala Lumpur, confirm “preliminary consensus” on trade
- Talks coincide with ASEAN Summit and address tariffs, export controls, and fentanyl flows
- Trump and Xi set to meet in Busan, South Korea, on Oct 30 during the APEC Summit
- Diplomats see Sunday’s understanding as groundwork for a broader deal
KUALA LUMPUR, Malaysia: China and the United States said on Sunday they had reached a “preliminary consensus” on trade following talks held on the sidelines of the Association of Southeast Asian Nations (ASEAN) Summit in the Malaysian capital.
The separate confirmations from both negotiating parties marked the most tangible progress in months of dialogue between the world’s two largest economies, a significant first step towards de-escalating the trade war.
On the Chinese side, it came from China’s Vice-Minister of Commerce Li Chenggang, who told reporters after the meeting that the discussions were “constructive and candid” and produced “a preliminary consensus on key economic and trade matters.”
Li met with US Trade Representative Jamieson Greer, alongside senior officials from both delegations.
According to Reuters, Bloomberg, and South China Morning Post, the Kuala Lumpur session covered extension of the existing trade truce, revisions to export-control measures, and curbs on Chinese shipments of fentanyl precursors, a recurring concern for Washington.
Neither side disclosed the full text of the understanding, describing it as an “initial framework” that necessitates further technical coordination.
“Both parties recognised the need for stability and predictability in the global trading environment,” Li said, in remarks carried by China’s state broadcaster CCTV.
Likewise, the US delegation described the tone of the meeting as “professional and pragmatic,” according to a Bloomberg report that quoted a senior administration official.
Diplomatic observers say the timing of the consensus is strategic, as it comes just four days before a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The two leaders are scheduled to hold a bilateral session on October 30 in Busan, South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit.
While the ASEAN Summit serves as a regional policy forum focused on Southeast Asia, the APEC gathering is a broader platform that includes the United States, China, and 19 other Pacificrim economies.
Diplomats and analysts have described the Kuala Lumpur outcome as “groundwork” for the Busan meeting, where Trump aims to “clinch a deal” with Xi, according to Politico and Reuters reports citing U.S. officials.
“The use of the phrase ‘preliminary consensus’ signals an effort to clear obstacles before the leaders meet,” said Zhao Long, a senior fellow at the Shanghai Institutes for International Studies, quoted by South China Monitoring Post.
“It indicates both sides are aligning expectations to make the Busan meeting productive rather than confrontational.”
In Washington, a White House spokesperson said the administration “welcomes progress where it is possible” but emphasised that any new deal would need to ensure “fair treatment for US workers and protection of advanced technologies.”
Market analysts said the diplomatic tone of cooperation, even if limited, could ease investor concerns ahead of the APEC summit.
Financial observers expect Asian markets to open on a firmer note when trading resumes, as signs of dialogue between Washington and Beijing often help stabilise sentiment.
Although no binding commitments were signed in Kuala Lumpur, the outcome has been widely interpreted as a thaw in the US–China trade standoff and a potential signal that both governments seek stability in an otherwise strained geopolitical environment.
