ISTANBUL

US Treasury Secretary Scott Bessent said Wednesday that Washington and Beijing this weekend will hold two days of trade talks in Malaysia’s capital Kuala Lumpur.

On Saturday and Sunday, Bessent will meet with his Chinese counterpart, Vice Premier He Lifeng, he told Fox Business Network.

Malaysia is hosting the Association of Southeast Asian Nations (ASEAN) summit from Sunday to Tuesday.

US Trade Representative Jamieson Greer will also take part in the talks.

Bessent expressed hope that the sides can get their respective issues "ironed out" this weekend so that US President Donald Trump and Chinese President Xi Jinping can "enter their talks in a more positive note."

"They are in frequent contact, it would be a shame to waste their first in-person meeting during President Trump's second term, trying to get past some problems rather than moving towards a more constructive dialogue between the US and China," he said.

Trump on Wednesday also said he will meet with Xi during his upcoming trip to Asia, which will also include stops in Malaysia and Japan.

Bessent also said Trump is now "scheduled to do a pull-aside" meeting with Xi at the Asia-Pacific Economic Cooperation summit in South Korea.

Earlier this month, China expanded restrictions on its rare earth export. Washington in turn threatened to impose an additional 100% tariff on goods from China.

China continues to dominate the global market in rare earths, producing more than 90% of the global supply, and other rare earths.

Washington is "contemplating" how the US and its allies would respond if the sides are not able to negotiate a pause or relief on the restrictions, said Bessent.

"All options are on the table. I am optimistic we have had a successful de-escalation but we are going to have two days of very fulsome talks," he said.

The Kuala Lumpur meeting will mark the fifth one between the sides. The top negotiators previously held talks in Geneva, London, Stockholm, and Madrid.

In August, the US and China agreed to a truce in tariffs until Nov. 10, marking the third time since Trump raised tariffs to 145% before later reducing them. China had raised their tariffs for the US goods up to 125%.