The United States and China are engaging in high-stakes trade negotiations in Kuala Lumpur, Malaysia, aiming to de-escalate tensions and salvage a potential meeting between President Donald Trump and Chinese President Xi Jinping. The talks, held on the sidelines of the ASEAN summit, involve top officials including US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, along with trade negotiator Li Chenggang. The discussions focus on key issues such as China's rare earth export restrictions, US export controls, and tariffs, which have recently intensified tensions. The US has expanded its export blacklist to include thousands of Chinese firms, while China has implemented new controls on rare earth exports to prevent military use, leading to a fragile trade truce that is due to expire in November. Both sides seek to avoid a return to higher tariffs and aim to facilitate a meeting between Trump and Xi next week at the Asia-Pacific Economic Cooperation summit in South Korea. The negotiations are delicate, with analysts noting that progress depends on resolving disputes over technology export curbs and China's resource restrictions, which serve as leverage for both countries. The talks represent an effort to prevent further escalation of the trade war and to establish a pathway for interim relief on tariffs and trade restrictions.