China announced that it will hold a new round of trade negotiations with the United States in Malaysia later this month, as the two economic powers attempt to ease escalating tensions over tariffs and technology controls.

According to a statement from China’s Ministry of Commerce, Vice Premier He Lifeng will lead a delegation to Malaysia from October 24 to 27 to engage in economic and trade discussions with the US side. The talks were agreed upon following a recent phone call between him and US Treasury Secretary Scott Bessent.

The ministry said the meeting will address “important issues in the economic and trade relationship between China and the United States,” signalling an effort to stabilise relations that have deteriorated in recent weeks.

Earlier this month, Beijing announced sweeping restrictions on its rare earths industry, a move that drew a sharp response from Washington. In retaliation, US President Donald Trump threatened to impose 100 percent tariffs on Chinese imports.

Trump has also warned he could cancel his planned meeting with Chinese President Xi Jinping during the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea if no progress is made.

Despite the rhetoric, Trump has expressed hope for a “good” deal to end the long-running trade dispute, which has unsettled global markets and disrupted supply chains.

The Malaysia talks mark the latest attempt by both sides to defuse tensions that have defined their trade relationship for much of the past decade.