Sino-US trade relationship can be redeemed at ASEAN ahead of APEC Summit

United States (US) Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet in Kuala Lumpur, a symbolic midpoint between the two superpowers now locked in a bruising trade confrontation.

Their task is formidable: to prevent economic rivalry from hardening into permanent hostility before the Asia Pacific Economic Cooperation (APEC) Summit convenes in Gyeongju, South Korea. South Korea is the APEC Chair.

The timing is auspicious. ASEAN, under Malaysia's chairmanship, has become an inadvertent anchor of global stability amid intensifying US-China tensions.

By choosing Kuala Lumpur as the venue, both sides are signalling that Southeast Asia, neutral, dynamic, and economically intertwined with both, is the right platform to start untangling a relationship that has spiralled into mutual suspicion and punitive tariffs.

The challenge for Bessent and He is to turn this meeting from yet another photo opportunity into a diplomatic reset.

To do so, they must first reframe the narrative. This cannot be a zero-sum negotiation over tariffs or export controls alone. It must be about restoring the rules, rhythms, and reciprocity that once defined Sino-US trade.

For Bessent, a seasoned investor and now Washington's top economic strategist, the task is to show that America's concerns about China's state-subsidised industries and technology transfers can be addressed without weaponising tariffs.

His credibility stems from his pragmatic style and ability to translate political directives into market-friendly solutions. His message in Kuala Lumpur should be simple but firm: Washington wants fair access and transparency, not perpetual confrontation.

Meanwhile, He represents China's economic pragmatism. As the official responsible for macroeconomic policy and trade, he understands the costs of decoupling. For Beijing, stabilising trade ties is essential to sustaining growth and regaining investor confidence.

By engaging through ASEAN rather than in a direct Washington-Beijing standoff, He can demonstrate China's willingness to operate within a cooperative regional framework rather than an antagonistic bilateral one.

Both men have a narrow but critical window to rebuild confidence ahead of the APEC Summit.

A credible "peace and prosperity zone" could start with incremental, achievable measures - transparency on rare-earth exports, clearer rules on semiconductor supply chains, and mutual restraint on new tariff rounds.

Neither side needs to concede strategically; they simply need to de-escalate tactically.

A joint statement in Kuala Lumpur pledging to avoid further tariff increases before the APEC meeting would be enough to shift global sentiment from anxiety to cautious optimism.

ASEAN's role here is not passive. Malaysia, as ASEAN Chair, can present itself as an honest broker, reminding both powers that the region's prosperity depends on stable trade flows and open supply chains.

The bloc's neutral environment allows both delegations to retreat from the public theatre of confrontation and engage in quiet, face-saving diplomacy. For Southeast Asia, this is not merely mediation; it is existential.

ASEAN's economies are deeply enmeshed in the supply-chain web that connects the US and China.

If Bessent and He can frame their dialogue through ASEAN's inclusive mechanisms, perhaps by proposing a US-China-ASEAN working group on critical minerals or semiconductor resilience, it could evolve into a tangible institutional bridge.

Such a move would transform ASEAN from a passive bystander into an active stabiliser of global trade. It would also restore confidence in the spirit of APEC, which was founded precisely to foster open dialogue across the Pacific.

Yet, redemption will not come easily. Both leaders face domestic constraints: in the US, protectionist sentiment remains powerful; in China, sovereignty and self-reliance are political imperatives.

Each must deliver outcomes that are defensible at home yet conciliatory abroad. This is where ASEAN's gentle diplomacy can make a difference, providing the neutral ground for symbolic concessions that neither side could afford to make directly.

Time, however, is short. The tariff truce announced earlier this year is fragile. Without new trust-building steps, the next round of escalation could come swiftly.

That is why Kuala Lumpur must not be treated as a prelude to APEC, but as the main stage for a genuine breakthrough. The aim is nothing less than a KL Global Trade Concord where the US and China can further refine in APEC.

A failure here would mean that APEC becomes yet another arena of rivalry rather than renewal.

In a world increasingly defined by fragmentation and distrust, ASEAN offers an alternative grammar of cooperation, quiet, incremental, and inclusive.

If Bessent and He can seize that spirit, they may not only redeem the US-China trade relationship but also reaffirm Asia's capacity to keep the world economy anchored in dialogue rather than division.