China, U.S. to start new round of trade talks in Malaysia

The United States is reportedly mulling curbs on exports to China manufactured with American software in response to Beijing's rare earth export control, as negotiators from both sides prepare for a new round of trade talks in Malaysia.

U.S. President Donald Trump said he expects to ink a deal in a prospective meeting with President Xi Jinping in South Korea next week.

Trump said when hosting NATO chief Mark Rutte that he has a long meeting scheduled with Xi during his upcoming trip to South Korea.

"We'll be going to Malaysia, South Korea and Japan. In South Korea I'll be meeting with President Xi of China. We'll have a pretty long meeting scheduled. We can work out a lot of our questions and our doubts and our tremendous assets together. So we look forward to that. I think something will work out. We have a very good relationship, but that'll be a big one."

Trump expected a trade deal with the Chinese leader that could range from soybean purchases to rare earth minerals.

He downplayed the significance of China's sweeping rare earth export curbs, by calling the measure a "disturbance," and further noted tariffs is a more powerful issue.

(Reporter: What deliverables from meeting with Xi in South Korea?)

Trump said: "I think we'll make a deal. I think we're gonna make a deal on the rare earth is the least of it. Look, the tariffs are much more powerful than the rare earth. The rare earth is a disturbance, but there's a lot of rare earth around, I'll tell you. I've had more calls on rare earth. We've got it, everybody's."

The November 1st deadline is looming for 100 percent additional U.S. tariffs on all Chinese goods.

In a recent interview, U.S. Treasury Secretary Scott Bessent confirmed his country was also considering limiting exports of products using American software to China.

He said "everything is on the table," signalling these export controls, whether it's software, engines or other products, will likely be in coordination with their G-7 allies.

His remarks come ahead of his highly-anticipated negotiations with the Chinese delegation led by Vice Premier He Lifeng in Kuala Lumpur.

Bessent noted he was optimistic that their fresh round of trade talks from Friday to next Monday could lay the groundwork for a good meeting between the two heads of state.

China's Ministry of Commerce said in a statement that both parties are expected to discuss key issues in the bilateral relations.