Published by Global Banking and Finance Review
Posted on July 11, 2025
By Daphne Psaledakis and Danial Azhar
KUALA LUMPUR (Reuters) -U.S. Secretary of State Marco Rubio said on Friday he had "positive and constructive" talks with Chinese Foreign Minister Wang Yi, as the two major powers vied to push their agendas in Asia at a time of tension over Washington's tariff offensive.
The top U.S. diplomat was in Malaysia on his first Asia trip since taking office, seeking to stress the United States' commitment to the region at the East Asia Summit and ASEAN Regional Forum, where many countries were reeling from a raft of steep U.S. tariffs announced by U.S. President Donald Trump this week.
Rubio had his first in-person talks with the Chinese foreign minister, coming as Beijing has warned the United States against reinstating hefty levies on its goods next month and threatened retaliation against nations that strike deals with the U.S. to cut China out of supply chains.
Wang has sharply criticised Washington during talks with Asian counterparts in Malaysia, calling the U.S. tariffs "typical unilateral bullying behavior".
But both sides described the bilateral meeting as positive and constructive on Friday. And Rubio said the odds of Trump meeting Chinese President Xi Jinping were high.
"We're two big, powerful countries, and there are always going to be issues that we disagree on. I think there's some areas of potential cooperation and I thought it was a very constructive, positive meeting, and a lot of work to do," he told reporters.
Rubio emphasised that his sitdown with Wang was not a negotiation, but rather about establishing a constructive baseline to continue talks.
Asked about a possible Trump-Xi meeting, Rubio said both sides wanted to see it happen.
"We have to build the right atmosphere and build ... deliverables, so that a visit isn't just a visit, but it actually has some takeaways from it that are concrete. But there's a strong desire on both sides to do it."
China's foreign ministry said Wang had emphasised that both countries should translate consensus reached by their leaders into policies and actions,
"Both sides agreed that the meeting was positive, pragmatic and constructive," it said.
TRIP OVERSHADOWED BY TARIFFS
Rubio's visit is part of an effort to renew U.S. focus on the Indo-Pacific region and look beyond conflicts in the Middle East and Europe that have consumed much of the administration's attention since Trump's return to office in January.
But that has been overshadowed by this week's announcement of steep U.S. tariffs on imports from many Asian countries and U.S. allies, including 25% targeting Japan, South Korea and Malaysia, 32% for Indonesia, 36% for Thailand and Cambodia and 40% on goods from Myanmar and Laos.
China, initially singled out with levies exceeding 100%, has until August 12 to reach a deal with Washington to avoid Trump's reinstating additional import curbs imposed during tit-for-tat tariff exchanges in April and May.
Analysts said Rubio would use the trip to press the case that the United States remains a better partner than China, Washington's main strategic rival. Rubio met his counterparts from Thailand, Cambodia, Vietnam and Indonesia on Friday.
Wang has rebuked the United States in Kuala Lumpur, saying no country should support or agree with its tariffs, according to remarks released by Beijing on Friday.
He told Thailand's foreign minister the tariffs had been abused and "undermined the free trade system, and interfered with the stability of the global production and supply chain".
During a meeting with his Cambodian counterpart, Wang said the U.S. levies were an attempt to deprive Southeast Asian countries of their legitimate right to development.
"We believe that Southeast Asian countries have the ability to cope with complex situations, adhere to principled positions, and safeguard their own interests," he said.
In a joint communique on Friday, ASEAN foreign ministers expressed concern over rising global trade tensions and the need to diversify trade, calling for a transparent and fair multilateral trading system.
Without mentioning the United States, they said unilateral tariffs were "counterproductive and risk exacerbating global economic fragmentation".
INDISPENSABLE PARTNERSHIP
Rubio also met Russia's Sergei Lavrov on Thursday and said he and Lavrov had shared some ideas on a new or different Russian approach on Ukraine.
"I don't want to oversell it, okay, but it was constructive," he said on Friday. "We'll find out, but there are some things that we will potentially explore, and I relayed that to the president and our team last night."
Rubio also met Japan's foreign minister and South Korea's first vice foreign minister in Malaysia on Friday to discuss regional security and a strengthening of their "indispensable trilateral partnership", a U.S. State Department said in a statement.
Asked about Japanese Prime Minister Shigeru Ishiba's remarks on Thursday that Tokyo needs to wean itself off of its dependence on Washington, Rubio said it was not a comment to be viewed negatively.
"We obviously have very strong commitments and an alliance with Japan. We continue to cooperate very closely with them," he said.
(Reporting by Daphne Psaledakis and Danial Azhar in Kuala Lumpur; Additional reporting by Liz Lee, Xiuhao Chen and Yukun Zhang in Beijing and Mikhail Flores in Manila; Writing by Rozanna Latiff and Martin Petty; Editing by Saad Sayeed and Joe Bavier)
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