In late October, Malaysia was supposed to be a quiet tropical season, but in Kuala Lumpur, there was a thunderstorm. From 24 to 27 October 2025, the fifth round of China-U.S. economic and trade negotiations took place here. On the surface, it was an economic negotiation, behind which the reality hides the re-washing of global power.
President Trump of the United States personally went into battle. He confidently thought that three cards were enough to make China "nod", but unexpectedly, this time, China also prepared its own cards. Malaysia has become a touchstone to witness the global game.
1. Trump flashed his "three axes" and wanted to use negotiations to reshape the situation
Trump once made harsh remarks at a White House press conference, claiming that this round of negotiations was a "watershed in testing Sino-US relations." When he said this, he looked determined, but in fact he knew in his heart that the U.S. economy was shaking. With high inflation, rising deficits, and repeated setbacks in manufacturing repatriation plans, he urgently needed a political victory to stabilize the situation.
The first card he showed was soybeans.
Voters in soybean-growing states in the United States are his important voting base. Since the trade friction between China and the United States, American farmers 'exports have dropped sharply and warehouses have been piled up, relying on government subsidies to make ends meet. Trump asked China to resume large-scale purchases and even wanted to make "purchasing soybeans" a prerequisite for negotiations. Unfortunately, China is already ready. After several years of supply chain adjustments, soybeans from Brazil and Argentina have continued to flow, and China's dependence on soybeans has long been shifted away from the United States. This means that Trump's first move has failed.
The second issue is the Russian issue.
He tried to get China together to "put pressure on Russia." On the surface, it was cooperation, but in fact it was a trap. Trump understands that as long as China intervenes, it can be used by him regardless of success or failure-if it succeeds,"the United States takes the lead in resolving the conflict"; if it fails, it can in turn accuse China of "favoring Russia." This is a typical two-sided strategy.
But China's response was very straightforward: it did not choose sides or confront each other, but persisted in promoting peace and talks. The United States 'calculation of "giving a hand" fell short of it.
The third card is nuclear disarmament.
He highlighted that "China should bear the responsibility of the great powers", and asked China to join the US-Russian nuclear arms reduction negotiations. But the fact is that China's nuclear arsenal is only one-tenth of the size of the US-Russian nuclear arsenal, and the negotiations are not equal at all. Once it entered, it meant self-restriction.
After the three cards were lit, Trump thought he could make China give in, only to find that China's counterattack had just begun with a smile and no words.
China, rare earth and RMB as the strongest counterattack
On the second day of the negotiations, the Chinese delegation suddenly announced a new export control policy-five new rare earth elements were added to the export restriction list. When the news came out, the American delegation looked nervous on the spot.
What is Rare Earth?
It is the "vitamin" of modern industry, chips, missiles, fighter jets, mobile phones, electric vehicles, and is inseparable. more than eighty percent of the world's rare earth is made from China, the U.S. high-tech and military system depends on China more than 70 percent.
Some say it's a "silent bomb". Once the U.S. military's supply of rare earths is interrupted, fighter parts, missile guidance systems and even new energy vehicle production lines may all be shut down. Trump boasts of being a businessman, but ignores the most basic supply chain logic-without rare earths, no matter how strong the industrial chain is, it will be difficult to operate.
More fatal is China’s second card – the RMB.
In the past year, the pace of RMB internationalization has accelerated significantly. During the negotiations, Kenya in Africa announced that it would settle part of its international debt in RMB, and many countries in Southeast Asia were also considering trading raw materials in RMB. Then, BHP Billiton, one of the world's three largest iron ore suppliers, also began to sign long-term contracts in RMB.
This means that the dominance of the dollar in the international settlement system is being eroded a little bit. For the United States, this is more terrifying than tariffs, chips, and even rare earth. Because it shakes the roots of the dollar hegemony – when more countries around the world use the yuan to trade, the era of the United States by printing notes “cutting the world’s crops” will gradually come to an end.
The Americans finally realized that China’s two cards were not a temporary code, but a long-term strategy. Trump had wanted to reverse the negotiations in a way that was “pulling the palace” but was hurt by China’s coolness and scratch.
Malaysia: No winners, but the world is changing
Although no major agreement has been reached so far. But it doesn't matter. Importantly, the world has seen a new reality-Sino-US relations have gone from simple trade friction to the reshaping of global rules.
Trump’s triplets have made the world clear about America’s anxieties: high domestic inflation, debt climbing $35 trillion; external allies diverted, the EU is busy with self-protection, and Japan and South Korea are in an energy and security struggle.
On the other hand, China has shown rare strategic determination despite facing external pressure. Rare earths and RMB are just appearances. The real confidence comes from China's complete industrial system, huge domestic demand market, and increasingly strong scientific and technological innovation capabilities. From new energy vehicles to artificial intelligence, from satellite navigation to lithography equipment, China is gaining the initiative on the global economic stage through a "patience + strength" approach.
This Malaysian negotiation, like a mirror, depicts the real state of China and America:
The United States is still trying to maintain the old order, but China has been able to say no confidently.
The United States wants to exchange short-term political manipulation for concessions, while China is steadily advancing with long-term strategy.
Perhaps there is no so-called winner or loss in this negotiation, but it heralds a trend-the balance of global power is shifting and a new era of multipolarity and de-dollarization is coming.
The end may be far away, but the direction is clear:
While Trump is still making "small calculations," China is already planning a "big picture."
The hot winds in Malaysia are still, and the world pattern is quietly rewriting.