High-Stakes Diplomacy: U.S. Officials Race to Ease U.S.-China Trade Tensions

U.S. officials are traveling to Malaysia to address escalating trade tensions with China over rare earth exports. The goal is to maintain upcoming talks between Presidents Trump and Xi in South Korea. New U.S. tariffs on China are set to take effect, prompting strategic responses to balance trade relations.

High-level U.S. officials are on a diplomatic mission to Malaysia amid mounting trade tensions with China concerning rare earth exports. The move aims to ensure the planned meeting between President Donald Trump and Chinese President Xi Jinping in South Korea proceeds as scheduled.

Trade hostilities between the global economic giants have intensified, driven by U.S. tariffs and China's export controls. With escalating measures on both sides, U.S. Treasury Secretary Scott Bessent claims the stakes are global, warning of any unworkable licensing regime by China.

As Trump's Asia tour unfolds, there is optimism for a resolution, yet U.S. authorities prepare for stronger measures should China maintain its stance. The dynamics of U.S.-China trade are under scrutiny, especially concerning critical software exports and commitments China is perceived to have violated.

(With inputs from agencies.)