China and the United States finally received some positive signals in the economic and trade field. During the two days from October 25 to 26, consultations were held in Kuala Lumpur, Malaysia. The place chosen this time was Merdeka 118 Building, which is the tallest building in the area.

Why go to Malaysia to talk? because this country will be the ASEAN rotating presidency next year, China has a great deal of trade with it, long since it is the largest partner, and the United States is also relying on it in Southeast Asia for semiconductor sealing bases.

The leaders of the consultation, the Chinese side is State Council Deputy Prime Minister Ho Li Feng, the U.S. side is Treasury Secretary Scott Bessent and Trade Representative Greil. The two are teamed, the team headed by various experts, covering finance, trade, customs and what.

The APEC Leaders¡¯ Meeting was held in South Korea, where the two heads of state and state may meet between October 31 and November 1. South Korean officials said it would be interesting if it were a meeting, the first time the heads of state had a face-to-face conversation in a third country.

So this round of talks in Kuala Lumpur, like the front-stage, must first get the economic and trade issues in line, so that the high-level meeting can pave the way. Otherwise, the tariffs will break up again, the atmosphere will be ruined. The time is also very tight. Before August in Madrid, the two sides agreed to extend the tariff ceasefire to November 10.

On October 14, the United States began charging port service fees for Chinese ships, and China responded on the same day, charging special port charges for ships owned, operated or held by the United States more than 25 percent, as well as U.S. ships.

Feedback from the shipping company that the delay has increased and the cost has increased. During the consultations, this has become a new focus, and ways must be found to alleviate it. Overall, the five major topics discussed this time are quite practical: the United States '301 measures against China on maritime logistics and shipbuilding, extending the suspension period of reciprocal tariffs, fentanyl tariffs and law enforcement cooperation, agricultural product trade, and export control. These include old issues, such as tariffs and agricultural products, as well as new ones, such as shipping fees and rare earth controls.

Let's talk about ships first. The move taken by the United States on October 14th was a unilateral fee increase. After China responded reciprocally, friction arose. During the negotiations, the two sides agreed to explore the cancellation of these fees to avoid further escalation. The United States admitted that this incident triggered a chain reaction, and China emphasized that the principle of reciprocity was self-defense.

As a result, the preliminary consensus was to suspend these measures and give logistics a breath. The tariff suspension period, originally planned to expire on November 10, the U.S. side had wanted to impose 100% tariffs, and now the statement has not pushed forward, the two sides agreed to extend the ceasefire period.

In the case of fentanyl, China managed all substances in 2019, making it the first comprehensive regulation in the world. The abuse is serious in the United States, mainly due to its own problems. But during the consultations, this became a point of cooperation, and the two sides promised to strengthen law enforcement and crack down on cross-border smuggling. The United States provides data and China shares its control experience. It is a low-hanging fruit and can advance quickly.

Agricultural trade is directly related to American farmers. Since May, China's imports of soybeans from the United States have basically stopped, U.S. soybean exports have been blocked, and prices have plummeted. Those main producing areas are still Trump's ticket warehouses, and farmers' dissatisfaction directly turns into ruling pressure. After negotiations, it was agreed to resume some purchases and stabilize the supply chain.

According to China customs data, imports and exports to "Belt and Road" countries increased by 6.2% in the first three quarters, accounting for 51.7% of the total value. This shows that trade diversification is accelerating, but there is still a market for American agricultural products. Export controls involve China's rare earths. China accounts for 69% of global smelting and separation capacity and more than 90% of finishing production.

In October, China announced the implementation of regulations on rare earth items, technology, equipment and raw materials, and medium-weight rare earth, lithium batteries. This hit the U.S. military industry, high-tech, new energy. The U.S. has rushed to discuss the scope of adjustment in the negotiations to balance the flow of technology. China's semiconductor equipment market in the second quarter of 2025 sales of $113,6 billion, accounting for 34.4% of the world, showing resilience.

According to the US economic forecast, the IMF said that the growth of the United States will slow down to 2% in 2025, prices will still rise, and the economic uncertainty will be great. This has added pressure to negotiations.

The two-day consultation process was quite tense. The first day from the agenda, China pushed the ship issue and the US re-exported controls. Divided into groups and discussed different topics at the same time. Exchange data, such as rare earth statistics and soybean stocks. The following morning Fentanyl, afternoon tariffs. After the US team coordinated, concessions were evident.

In the end, a basic consensus was reached on the five major issues, and frank exchanges were conducted under the guidance of the phone call between the two heads of state. He Lifeng said that the essence of Sino-US economic and trade is mutually beneficial and win-win, while cooperation leads to both benefits and struggles. Maintaining stability is in the interests of the two peoples and conforms to international expectations.

The US side said that the US-China economy and trade are the most influential in the world and are willing to equally respect the resolution of differences and strengthen cooperation.The two sides agreed to refine the details and carry out domestic procedures.