• US Treasury Secretary Scott Bessent is set to meet Chinese Vice Premier He Lifeng next week to discuss trade.
• Tensions have surged following China's export control measures on rare earth elements.
• President Trump indicates a 100% tariff on Chinese goods may not be sustainable.
• Both nations hope to avoid an escalation of tariffs through renewed talks.

US Treasury Secretary Scott Bessent confirmed plans to engage in discussions with Chinese Vice Premier He Lifeng in Malaysia next week, representing a crucial step towards easing recent trade tensions. This announcement follows China’s implementation of stringent export controls on rare earth elements, triggering threats of a retaliatory 100% tariff on Chinese imports by US President Donald Trump, who described the situation as "an unprecedented position” that they were forced to respond to, according to SCMP, Channel News Asia, and India Times.

In a related development, Bessent emphasized that recent communications have allowed for a de-escalation of hostilities, noting that preparations for a high-level summit between Trump and Chinese President Xi Jinping are back on track. The anticipated meeting is set to occur during the Asia-Pacific Economic Cooperation summit later this month in South Korea. This comes as leaders of the G7 nations called for a coordinated response to China’s trade practices, emphasizing the need for a unified approach to managing rare earth supplies, according to Channel News Asia and Channel News Asia.

During a recent interview, Trump remarked that while the 100% tariff may not be sustainable, ongoing communication with China is essential, stating, "They want to talk, and we're talking," which reflects a softer stance amid prior threats to escalate tariffs. He noted that discussions have been "frank and detailed," and expressed optimism for a fair outcome in negotiations, according to The Jakarta Post and India Times.

China's Ministry of Commerce has also indicated a willingness to retaliate if the US follows through on its tariff threats, emphasizing that "willful threats of high tariffs are not the right way to get along with China." The current climate suggests that both nations are engaged in a delicate negotiation process designed to prevent further economic fallout, as fears mount over a possible breakdown in trade relations, according to Channel News Asia and The Jakarta Post.