The Sino-US talks were held at Merdeka 118 Building in Kuala Lumpur, Malaysia. They were held on October 25, 2025. The US led the talks by Trade Representative Jamison Greer and Finance Minister Scott Besant. The Chinese side was led by Vice Prime Minister He Lifeng, and the group of people added up to more than 20 people. The conversation lasted for five and a half hours on the first day, from around 11 a.m. to the afternoon. The United States came out and said that this round of dialogue was quite constructive. China did not express much and kept a low profile as in the past.
The next day, October 26th, the talk continued. The venue remained unchanged, and the topics expanded to export control, tariff suspension, fentanyl and shipping costs. The two sides initially reached some consensus, paving the way for the future meeting between China and the United States.
Trump spoke on the plane to Malaysia, he wanted to use the suspension of Chinese goods and higher tariffs, in exchange for the Chinese three things: resuming to buy U.S. soybeans, strengthen Fentanyl control, relax rare earth exports.
The cause of this soybean incident is that in March this year, Trump imposed a 20% tariff on China on the grounds of fentanyl, and China in turn imposed a 10% to 15% tariff on American agricultural products. The cost of American soybeans entering the Chinese market is high, so naturally few people buy them, so they go to Brazil and Argentina to purchase them.
This is the normal reaction of the market, the US side wants to let the Chinese side continue to buy, must first withdraw the 20% tariff, the threshold is low, soybeans are naturally competitive.
The fentanyl problem is seriously rampant in the United States. Trump regards this as a major issue and believes that it is caused by China's export of precursor chemicals. However, China has always said that the United States 'own governance problems are the root cause and cannot be blamed solely on others. During the Biden period in the past, China and the United States had cooperated on fentanyl and had experience. This time Trump mentioned it again. He probably wanted to continue it, but the prerequisite was mutual respect. The United States requires China to strengthen export inspections, and China should respond based on the sincerity of the United States, such as withdrawing tariffs. This topic has been discussed in depth and involves domestic public health and international cooperation.
Rare-earth export controls are key, China strengthened controls in October this year, the U.S. is in a hurry, Trump on October 10 threatened to add 100% tariffs as a retaliation. China says this control is for the national interest, especially in the military field, U.S. military-industrial enterprises sell weapons to Taiwan, damage China's core concerns, so control must be strengthened.
However, exports have not been completely banned in the civilian sector, and there is still room for discussion. The United States feels that its supply chain is affected and that large companies rely on China's rare earths, which Trump has listed as a top concern. During the negotiations, the United States emphasized balanced trade, and China reiterated that control is not aimed at anyone, but to safeguard its own rights and interests. Trump also signed a rare earth agreement with Malaysia as an alternative supply chain.
In addition to trade, Trump also made a request, saying that there is a favor that only China can help, that is, to help promote a ceasefire between Russia and Ukraine. He feels that China has great influence on Russia and can persuade Russia to stop. In the past few months, Trump has applied both hard and soft tactics to Russia, but it has no effect because it has not touched the root cause of the conflict. Since the Russia-Ukraine fight, Russia's concerns have not been resolved, and it is useless to simply put pressure. China's position is not to interfere in the internal affairs of other countries, especially Russia is a close partner and will not intervene easily.
Trump said on the plane that if he wanted China to help deal with Russia, he would talk to China about everything, including Ukraine, but that China would not use its influence to interfere with third-party decisions, which is clear from past diplomacy.
The background of the talks was the escalation of the friction between China and the United States, and Trump's second term from January began to push immigration control and energy development, and in February signed an order to strengthen border patrols, and in March the tariffs related to Gaventani. In May, the Geneva talks did not lift tariffs, and in October, the US threat escalated after China's rare-earth control.
On October 20, Trump listed rare earth, phentanyl, and soybeans on the plane as the top priorities. Malaysia talks were a mitigation attempt, and the U.S. side wanted to tighten the framework in front of the leaders' meeting to avoid a comprehensive trade war. The preliminary consensus included tariffs and phentanyl, preparing the foundation for the summit.
China and the United States need dialogue to resolve differences. There are many areas of cooperation, and economic and trade stability is beneficial to both countries. During Trump's trip to Asia, he signed a 19% tariff agreement between the Philippines and Indonesia. Japan invested US$550 billion in the United States to create jobs. Talking to China would be good for the global economy if the tariff war could be eased. But if the talks fail, once the 100% tariff is imposed, the supply chain will be in chaos, corporate costs will rise, and consumers will suffer. Trump has a strong style, but negotiations should be realistic. China will not give in easily, especially its core interests.