Kuala Lumpur Negotiations in 48 Hours: Intense US-China Confrontation on Rare Earths, Tariffs, and Fentanyl Issues, Reaching a Phased Compromise

According to the latest news, Li Chenggang, the International Trade Negotiation Representative and Deputy Minister of the Ministry of Commerce of China, stated on October 26 that during the recent fifth round of economic and trade negotiations held in Malaysia, the Chinese and US sides had in-depth and candid discussions on a series of key issues and reached a preliminary consensus. The next step will involve both parties completing their internal approval procedures. 📊 Core Issues and Progress of Negotiations This round of negotiations covered several core economic and trade issues of mutual concern. Specifically, these include export controls, further extending the suspension period of reciprocal tariffs, issues related to fentanyl (involving tariffs and drug control cooperation), further expanding trade, and US measures related to "301 vessel charges," among others. Li Chenggang noted that the talks were constructive, with the US side adopting a firm stance in expressing its position, while the Chinese side also demonstrated a strong position in safeguarding its own interests. After intense consultations, both parties have reached a preliminary consensus on how to properly address these issues. 🌐 Background and Next Steps The negotiations held in Malaysia represent the fifth round of consultations between the economic and trade representatives of China and the US. US Trade Representative Tai also confirmed the positive progress of the talks, stating that the results achieved by both sides could almost be submitted for review by the leaders of the two countries, and it is expected that the leaders will hold discussions on the progress in the coming weeks. The preliminary consensus reached will need to go through each party's internal approval procedures to obtain final approval and implementation. 💎 Summary Overall, the China-US economic and trade negotiations have made phased progress on complex issues and reached a preliminary consensus, laying the foundation for higher-level communications and the eventual conclusion of agreements. Both parties have shown a willingness to resolve differences through dialogue, but the implementation of specific plans still depends on the completion of internal procedures.