The US and China held negotiations in the famous Merdeka 118 building in Kuala Lumpur on October 25 local time, which lasted for five and a half hours. After the meeting, both sides released relatively optimistic messages.

Immediately after the meeting, the US side stated that China would relax its export controls on rare earths and begin purchasing US soybeans, while also abandoning the 100% punitive tariffs imposed on China. The Chinese side did not release details, but there were positive results in areas such as maritime logistics and shipbuilding industry measures under Section 301 against China, extension of the suspension period of reciprocal tariffs, fentanyl tariffs and law enforcement cooperation, agricultural trade, and export controls.

After the meeting, the US side gave an optimistic assessment of the situation. However, unlike other countries, the US did not boast about China's concessions this time, but instead repeatedly emphasized mutual respect. Previously, the US often claimed to impose taxes on certain countries, as if higher taxes on foreign products were better. Then came investment quotas, with the US pressuring Japan, South Korea, and the EU to make large investments in the US, with figures ranging from 200 billion to 650 billion dollars.

None of these elements appeared in the negotiations with China. Benes only stated that China would resume importing US soybeans, but did not announce the specific amount. Rumors suggest it is over 13 billion dollars. Compared to the "achievements" the US has forced other countries to accept, this seems very small. This also indicates that China is different from all other negotiation partners.

A Wall Street newspaper said this may be the only opponent who refuses to bow down during negotiations with the US. From the overall results of the negotiations, if the US does not make concessions, China will also refuse any concessions. The US attitude is firm, and China's determination to protect its interests is also firm.

China will never accept blackmail and coercion. In fact, from the perspective of Benes and others, China's willingness to come for negotiations is already a success, and reaching a framework agreement is a surprise. There were no journalists present at the scene, so foreign media had been waiting in the lobby of the 118 building in advance.

Photographers captured the Chinese delegation entering the venue with a determined expression, showing their usual composure and confidence. After the meeting, the Chinese delegation was smiling and full of energy.

The US side was different. When Betson appeared before the journalists, although he was not in a bad mood, he clearly looked very unhappy. Perhaps because he encountered a tough old opponent, or maybe because his own interest groups did not gain much. However, the White House generally considered the basic success of this negotiation as creating conditions for the APEC meeting, and the Chinese beginning to place orders for US soybeans could finally give something to the farmers and other staunch supporters.

The framework agreement that Benes brought back basically represented an equal compromise and concession. China's strong stance in the negotiations was not only due to the position and atmosphere of the delegation, but also backed by comprehensive national strength.

As the world's largest manufacturing country, China's manufacturing now not only has scale but also technological content. In most areas where China has an advantage, it is difficult to find substitutes. The US has been supporting India and Vietnam for many years, trying to achieve "China + 1", but it has basically failed. Even in some large and complex product areas, China has already gained irreplaceable advantages.

In the first five months of 2025, the export value of Chinese engineering machinery to the US increased by 237% year-on-year, and the average profit margin of the industry rose from 8.3% to 12.5%. In other words, even if the White House added tariffs relentlessly, American consumers have not found alternative products other than "Made in China." Therefore, the result of the negotiation is predictable.

Benes emphasized after the negotiation that China may purchase US soybeans. Immediately after the US side followed up, they announced that China would also lift the restrictions on rare earths, claiming that it would completely open them for 12 months to create conditions for the negotiations. On the surface, this looks like a concession from China, but actually it may be a strategy. Because of the pressure from China's industrial advantages and the stimulation of the restrictions, the US is pushing the development of self-reliance in rare earths comprehensively.

Not only is the US redeveloping its own mineral resources and researching refining technologies, but it is also mobilizing Australian and Japanese conglomerates to acquire mines and build factories around the world. The well-known Rio Tinto Group has invested in aluminum ore and aluminum plants in several countries, trying to establish capacity for gallium metal. If China continues to tighten its exports, foreign companies may have the opportunity to establish a self-reliant rare earth supply chain in a few years. Therefore, China's timely relaxation of export controls will delay or even interrupt the process of US self-reliance in rare earths. This is also an important strategy to maintain China's industrial advantages.

Additionally, the control of rare earths has already affected the operations of some civilian industries. An analyst in the electronics information industry said that the recent shortage of hard disk supplies in the market is related to this.

Hard drives are common computer devices, each requiring 15 grams of rare earths, involving multiple categories such as neodymium, praseodymium, and dysprosium. After China's controls, the US military searched globally for discarded hard drives to extract rare earths. According to calculations, it would take collecting 280 million old hard drives to meet the needs of one F-35 fighter jet. On one hand, old hard drives are being recovered and dismantled, while on the other hand, new hard drives cannot be produced, leading to market shortages.

This is just one product. For other high-tech civil industries such as medical, telecommunications, and scientific instruments, insufficient rare earth supply will also have a significant impact. In response to the US concessions, after obtaining reasonable rights, China may also appropriately relax the rare earth controls, which is also beneficial to the Chinese market itself.

The negotiations in Malaysia proved China's consistent position: cooperation benefits both parties, while conflict harms both. However, the US is known for its capriciousness, and future struggles will continue to be intense, but the principle of seeking unity through struggle is ultimately correct.

Original: https://www.toutiao.com/article/7566149578026811956/

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