China and the United States began a new round of trade negotiations in Malaysia on Saturday, as the world’s two largest economies seek to prevent further escalation in their ongoing trade dispute.

According to China’s official Xinhua news agency, “the Chinese and U.S. delegations met on Saturday morning to discuss economic and trade issues,” as reported by Agence France-Presse (AFP).

On Friday, Chinese Commerce Minister Wang Wentao said there is potential for the two sides to reach agreements to resolve trade differences, expressing optimism about finding common ground between Beijing and Washington.