Beijing: China’s top trade negotiator, Li Chenggang, announced on Sunday that Beijing and Washington have reached a “broad consensus” following a new round of trade talks held in Kuala Lumpur, signaling a cautious but significant breakthrough in efforts to stabilize the world’s most critical bilateral economic relationship.
The discussions, which took place on the sidelines of the ASEAN summit, brought together senior officials from both nations amid growing uncertainty over tariffs, export controls, and global supply chain resilience. Li said that both sides agreed on several key issues, including extending the current trade truce, strengthening cooperation on fentanyl regulation, and enhancing the transparency of export measures.
Speaking alongside Chinese Vice Premier He Lifeng, Li described the dialogue as “professional, rational, and constructive,” emphasizing that both sides sought practical solutions rather than symbolic gestures. “We have reached important common ground and will report these results to our respective leaders for further direction,” he said, referring to Chinese President Xi Jinping and US President Donald Trump.
The Kuala Lumpur talks followed weeks of preparatory discussions between US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, who have been leading Washington’s economic engagement with Beijing under Trump’s new Asia strategy. The meeting was described as the most substantial since the earlier “Geneva consensus,” which helped suspend a series of punitive tariffs on both sides earlier this year.
While neither country disclosed the detailed terms of the new understanding, officials hinted that China may ease some restrictions on the export of rare earth minerals, while the United States could consider limited tariff adjustments and a relaxation of certain technology controls. These measures are expected to be finalized in the weeks ahead after being reviewed by both presidents.
Chinese state media characterized the agreement as a “confidence-building step” aimed at creating a stable environment for future negotiations. Beijing emphasized the need to “enhance mutual trust, reduce misunderstandings, and build a long-term cooperative mechanism” with Washington. The tone from both capitals suggests a shift from confrontation to cautious coordination, reflecting the recognition that economic rivalry must coexist with strategic interdependence.
Analysts believe the consensus could mark the beginning of a more structured trade relationship, potentially resetting ties that have been strained by years of tariffs, sanctions, and geopolitical friction. For global markets, the development offers a measure of relief, as uncertainty over US-China trade policies has weighed heavily on investors and disrupted manufacturing supply chains.
However, experts also warn that challenges remain. Core disputes over intellectual property, technology transfers, and market access persist, and the durability of this new consensus will depend on how each side implements its commitments. The upcoming Trump Xi meeting, expected later this year, is now viewed as a decisive moment that could either consolidate or derail the tentative progress achieved in Kuala Lumpur.
For now, both Beijing and Washington appear eager to project a sense of momentum and mutual respect. As Li Chenggang put it, “The world’s two largest economies have a shared responsibility to ensure stability, predictability, and prosperity not just for our nations, but for the global community.”