Kuala Lumpur [Malaysia], October 26: China and the United States have reached a 'basic consensus' on how to handle their respective trade concerns after two days of talks in Kuala Lumpur, Chinese Vice Premier He Lifeng said on Sunday, as per Xinhua.

He Lifeng met with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer over the weekend on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur, describing the discussions as 'candid, in-depth, and constructive.'

The talks covered a wide range of issues, including tariffs, export controls, trade in agricultural products, and cooperation on fentanyl-related enforcement, as per CNN.

He said that the essence of China-US economic relations is 'mutual benefit and win-win results,' adding that 'both countries gain from cooperation and lose from confrontation.'

The meeting was guided by the consensus reached earlier this year between Chinese President Xi Jinping and US President Donald Trump during their phone conversations.

Following the talks, Bessent told CBS News that Trump's threat of imposing an additional 100% tariff on Chinese goods 'has gone away.'

The proposed tariffs were part of Trump's response to Beijing's expanded export controls on rare earth materials, which are essential for global industries like electronics and defence.

'We had a very good two-day meeting,' Bessent said. ' I would believe that the - so it would be an extra 100% from where we are now, and I believe that that is effectively off the table.

He added, 'I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.'

According to CNN, both sides are now focused on preventing any escalation in their trade tensions, which had intensified earlier this month. Trump's tariff threats were initially set to take effect on November 1.

Trump arrived in Malaysia on Sunday for the ASEAN summit, the first stop of his five-day Asia tour that will end with a meeting with Xi Jinping in South Korea on October 30.

Speaking to reporters, Trump said he was optimistic about progress, 'I think we're going to have a deal with China.'

The latest round of talks comes amid rising concern over China's new export controls on rare earth magnets and minerals, which have led to shortages worldwide. The two countries have also been imposing sanctions and curbs on each other's industries in recent months, despite earlier truces reached in Geneva in May and extended in August. (ANI)