China and the United States have agreed to resume trade negotiations next week, as both nations attempt to ease mounting tensions and avert another costly tariff confrontation between the world’s two largest economies.
The agreement follows Beijing’s recent decision to impose sweeping restrictions on its rare earths industry, a move that triggered U.S. President Donald Trump’s threat to slap 100 percent tariffs on Chinese imports in retaliation.
Trump had also hinted he might cancel his planned meeting with Chinese President Xi Jinping, which is set to take place later this month in South Korea on the sidelines of the Asia-Pacific Economic Cooperation summit.
However, in what appears to be a renewed effort to mend relations, Chinese state media reported that Vice Premier He Lifeng and U.S.
Treasury Secretary, Scott Bessent, held “candid, in-depth and constructive exchanges” during a Saturday morning phone call.
Both sides reportedly agreed to organize another round of trade talks “as soon as possible.”
On social media, Bessent described the conversation as “frank and detailed,” adding that they plan to meet “in-person next week to continue our discussions.”
Bessent had earlier accused Beijing of trying to harm the global economy through its restrictions on rare earths, materials essential to products ranging from smartphones to military technology. U.S.
Trade Representative Jamieson Greer also joined the call, according to China’s Xinhua News Agency.
Just hours before the conversation, Fox News aired excerpts of an interview in which Trump confirmed he would indeed meet Xi at the APEC summit.
“It’s not sustainable, but that’s what the number is… They forced me to do that,” Trump said, referring to the 100 percent tariff threat.
– Coordinated response –
The high-level dialogue came as Washington sought to rally support from the Group of Seven (G7) finance ministers over China’s new export curbs.
According to EU economy commissioner Valdis Dombrovskis, the G7 ministers agreed to coordinate a short-term response and accelerate diversification of rare earth suppliers, though he warned such efforts could take years given China’s dominance in the sector.
“We agreed, both bilaterally with the US and at the G7 level, to coordinate our approach,” Dombrovskis said on the sidelines of the International Monetary Fund and World Bank’s fall meetings in Washington.
He added that countries would exchange information about their interactions with Chinese officials while developing immediate solutions.
German Finance Minister Lars Klingbeil expressed optimism that the upcoming Trump-Xi meeting could pave the way for resolving major trade disputes between the two nations.
“We have made it clear within the G7 that we do not agree with China’s approach,” he said, referring to the bloc that includes Britain, Canada, France, Germany, Italy, Japan, and the United States.
IMF Managing Director Kristalina Georgieva also voiced hope on Friday that Washington and Beijing could reach an understanding to cool economic frictions.
The renewed U.S.-China trade tensions erupted earlier this year when Trump, upon returning to office, vowed to impose sweeping tariffs on Chinese imports.
Tariffs on both sides soon soared to triple-digit levels, bringing much of the trade between the two countries to a standstill as global businesses awaited clarity.
Although both governments have since eased some of the measures, their fragile truce remains uncertain.
