Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent have started a new round of trade talks in Kuala Lumpur, paving the way for a possible meeting between the presidents of the world’s two largest economies.

The Chinese delegation of about 20 people arrived at the Merdeka 118 tower, the highest skyscraper in Malaysia, just before 11am on Saturday, and quietly walked past waiting reporters to a lift that would take them to the 96th floor of the glassy structure, which is still largely under construction.

A representative of the Chinese embassy said before talks began that the Chinese delegation’s US counterparts were already at the site. The two sides are due to talk until at least early evening, with no scheduled end time and a possible resumption on Sunday.

The two sides are expected to discuss issues crucial to China-US economic and trade relations, China’s Ministry of Commerce confirmed on Thursday.

The meeting in the Malaysian capital marks the fifth face-to-face meeting between He and Bessent since US President Donald Trump escalated his trade war in April.

Relations between the two global powers have been volatile in recent weeks, but the talks – following a between He and Bessent a week earlier – could open the door to a potential de-escalation.

Tensions flared after October 9, when Beijingannounced further export controls on rare earth elements – minerals vital to the production of many hi-tech goods, including those in the defence industry. The move was widely seen as retaliation for Washington’s expanded entity list in late September.