US Says First Day Of China Trade Talks "Very Constructive"

Tensions between the US and China escalated, causing market drops due to potential tariff increases. US and Chinese officials held "constructive" talks in Malaysia, aiming to de-escalate trade disputes. Key players included US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Earlier, Bessent criticized Chinese officials, citing threats and aggressive tactics regarding trade practices. The US sought to prevent supply chain disruptions, while China implemented export controls on rare earth minerals. President Trump plans to meet with Xi Jinping, hoping to extend a trade truce and secure concessions from China. Trump aims for deals involving soybean purchases, fentanyl control, and rare earth export restrictions. The trade war injects uncertainty into the global economy, with shifting trade patterns. Trump is also scheduled to meet with the Prime Minister of Malaysia to discuss economic deals. Trump also plans to meet with Japan to further strengthen the US-Japan alliance amid regional tensions.