New Delhi, Oct. 25 -- China and the United States began their latest round of trade talks in Malaysia on Saturday, ahead of a closely watched meeting between their leaders in South Korea.

The world's two largest economies are seeking to avoid further escalation of a damaging tit-for-tat tariff war, with U.S. President Donald Trump expected to meet Chinese President Xi Jinping in South Korea next Thursday, before departing from the United States to attend the 47th ASEAN Leaders' Summit in Kuala Lumpur. Trump also hinted at trade discussions with China.

Earlier this month, Beijing announced sweeping controls on the critical rare earths industry, prompting Trump to threaten 100 percent tariffs on imports from China in retaliation.

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