U.S. Treasury Secretary Scott Bessent announced on Friday that he will meet next week with Chinese Vice Premier He Lifeng in Malaysia in a bid to prevent an escalation of tariffs on Chinese goods — a situation President Donald Trump has described as “unsustainable.”

Bessent revealed the plans during a White House cabinet meeting and later confirmed the development following a phone call with He Lifeng on Friday evening. In a post on X (formerly Twitter), Bessent said the two leaders “engaged in frank and detailed discussions regarding trade between the United States and China,” and added, “We will meet in-person next week to continue our discussions.”

According to China’s state news agency Xinhua, both officials held “candid, in-depth, and constructive discussions on major issues in bilateral economic and trade relations” via a video call, agreeing to resume formal trade talks as soon as possible.

The meeting in Malaysia will mark the latest in a series of diplomatic exchanges between Washington and Beijing aimed at stabilizing trade ties. Bessent and He have previously met in four European cities over the past six months, negotiating a tariff truce that successfully reduced duties from triple-digit levels for both nations. However, that agreement is set to expire on November 10, raising concerns over a potential return to high tariff rates.

Holding talks in Malaysia — a major Southeast Asian exporter and a key trading partner for both the U.S. and China — is seen as a strategic move. The country’s exports currently face a 19% U.S. tariff, with a possible 100% duty looming on semiconductors and related electronics under a national security trade review.

The renewed urgency for dialogue follows Trump’s remarks earlier on Friday, in which he blamed Beijing for the latest trade impasse. The U.S. president criticized China’s new export restrictions on rare-earth minerals and magnets, warning that unless Beijing reverses the policy, Washington will impose an additional 100% tariff on Chinese imports starting November 1.

As tensions rise, next week’s Malaysia meeting could prove pivotal in determining whether the world’s two largest economies can avoid another bruising trade confrontation — one that risks disrupting global supply chains and further straining already fragile international markets.