On October 26, local time, the fifth round of two-day Sino-U.S. economic and trade talks ended in Kuala Lumpur.According to Xinhua news agency, the two sides opened an open and in-depth consultation on issues related to maritime logistics, shipbuilding 301 measures, mutual tariff suspension period, Fentanyl issue, agricultural products trade, export control.The Chinese Ministry of Commerce International Trade Negotiations Representative and Deputy Minister Li Zhen Steel said that the two sides have constructively discussed some of the options to properly handle the interests of the two sides and formed a "preliminary consensus" on these issues.
This detail is very critical. In other words, there may still be many technical adjustments to this consensus, but the overall direction has been finalized. China emphasizes "win-win cooperation", and the United States has also released a statement of "constructive cooperation". After several rounds of consultations, it is not easy to reach this point. Especially when the Trump administration has repeatedly threatened to impose 100% tariffs on China, any consensus is hard-won.
The talks also revealed a signal that the two sides do not want to leave the issue out of control. In addition, from the process, the Kuala Lumpur talks have actually two levels. One is to pave the way for the Chinese dollar, and the other is to prevent the trade war out of control. U.S. Treasury Secretary Bessent and Trade Representative Greil personally attended, not only the executive level negotiations, but also the political level of the route.
This is why "preliminary consensus" can appear, in fact, these four words are not only a summary of the outcome of the negotiations, but more like a sign of the two-country relationship temporarily "stopped."For the outside world, this means that the US-China relationship is moving from "continuous pull" to "limited mitigation."The market reaction is also direct, the U.S. stock futures response is rising, commodity prices are stable, and the public opinion in the Asia-Pacific region generally believes that this means that a new trade conflict will not break out temporarily.
Judging from the trajectory of the past few months, the Sino-US economic and trade dialogue has actually been recovering. From May to October, the top economic and trade leaders of China and the United States have met five times, each of which has laid the foundation for the current "preliminary consensus". This also shows that although Sino-US relations are complicated, communication channels have never really been interrupted. Whether it was Washington's tough stance or Beijing's firm response, it finally returned to the negotiating table.
Malaysia has always been an acceptable neutral location for both China and the United States. Compared to Washington or Beijing, choosing a third country is more conducive to reducing political sensitivity and provides greater flexibility for both delegations. According to reports, the negotiating venue is located in Murdika 118 building, while Trump himself attends the ASEAN summit at a nearby exhibition center. This arrangement of "at the same time but not meeting" reveals a subtle diplomatic balance.
In addition, it is worth noting that the U.S. side is rarely united in foreign terms. Bessent, Greer and even Trump’s remarks point to “positive progress” without facing each other. This shows that a consensus has been reached within Washington on the importance of Sino-U.S. economic and trade consultations. After all, if the relationship between the two countries continues to deteriorate, it will affect not only the U.S. industrial supply chain, but also the global confidence of the U.S. dollar. The U.S. side chooses to release goodwill at this point is a realistic consideration.
China's attitude is as steady as ever. We emphasize that Sino-US relations should adhere to mutual respect, peaceful coexistence and win-win cooperation, which is a principled position. China is not afraid of talking or fighting, but prefers to solve problems through talks. This attitude has won the affirmation of many international public opinions. Many foreign media pointed out that China has shown mature diplomatic determination throughout the process, adhering to principles and remaining flexible. In contrast, the US is more eager to achieve a "phased result" that can be announced to the outside world.
Of course,"preliminary consensus" does not mean that the problem has been solved. As the Chinese side said, both sides also have to implement their own domestic procedures. The internal political factors in the United States are complex. The Trump administration faces dual pressure from Congress and voters, while China has to ensure that the content of the agreement does not touch the core interests of the country. In the next few days, the focus will turn to the "China-US Heads of State Meeting" to be held in South Korea on October 30. Whether this meeting can implement the "preliminary consensus" or even expand into a more comprehensive economic and trade agreement will directly affect the trend of the global market.
However, regardless of the outcome, the Kuala Lumpur talks achieved at least three effects: first, it alleviated the risk of escalating the trade war; second, it paved the way for leaders 'meetings; and third, it temporarily stabilized the mood in the global market. These signs have undoubtedly given the world a sigh of relief. Bloomberg and Reuters both mentioned that the talks were "constructive" and "avoided further conflicts." In the past few years, Sino-US relations have often fallen into a vicious cycle, and a "collapse of talks" can trigger stock market shocks. Now, both sides are moving closer to pragmatism, and this shift shows that reason is returning.
From the perspective of China, the stability of Sino-U.S. economic and trade relations is not only a bilateral issue, but also a key link to the stability of the international system. China emphasizes win-win cooperation, not a diplomatic statement, but a reality. Whether it is agricultural product procurement or rare-earth supply chain, the two sides have long formed a deep interdependence.
On the other hand, the United States, while domestic inflationary pressures are still high and corporate costs are rising, also knows that excessive confrontation is unrealistic. As Finance Minister, Besent himself knows the importance of economic stability. The United States is willing to use the term "framework of agreement" this time, which is actually a step back and leaving room for subsequent negotiations.
In short, the game between China and the United States will not disappear overnight, but this change from confrontation to communication is progress in itself. Perhaps this "preliminary consensus" can't solve all problems, but it tells the world that China and the United States are still in dialogue and there is still room for cooperation. This is enough to make the whole world breathe a sigh of relief.