China and the United States have agreed to conduct another round of trade negotiations in the coming week, in an effort to avoid further escalating their trade dispute. The world’s two largest economies have been engaged in a tit-for-tat tariff battle, with the US threatening to impose 100 percent tariffs on imports from China.
The latest development comes after China announced sweeping controls on the rare earths industry, which prompted US President Donald Trump to threaten retaliatory measures. However, in a recent interview, Trump indicated that he would meet with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, contrary to earlier reports that he might cancel the meeting.
A high-level video call between Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent took place on Saturday, with both sides agreeing to hold a new round of trade talks as soon as possible. The call was described as “candid, in-depth and constructive” by Chinese state media, while Bessent characterized it as “frank and detailed” on social media.
The US has accused China of seeking to harm the global economy by restricting rare earth exports, which are crucial for the production of various high-tech products, including smartphones and guided missiles. In response to China’s latest export controls, the US has been working to rally the Group of Seven (G7) finance ministers to coordinate a short-term response and diversify suppliers.
According to EU Economy Commissioner Valdis Dombrovskis, the G7 ministers have agreed to coordinate their approach and exchange information on their contacts with Chinese counterparts. However, Dombrovskis noted that diversifying rare earth supplies could take years, given that China currently dominates the global market.
The US-China trade war has been ongoing since this year, with both countries imposing tariffs on each other’s imports. While the tariffs have been lowered in recent months, the truce between the two nations remains fragile. International Monetary Fund (IMF) Chief Kristalina Georgieva has expressed hope for an agreement between the US and China to ease tensions, and German Finance Minister Lars Klingbeil has stated that he hopes the upcoming meeting between Trump and Xi can help resolve the trade conflict.
The upcoming trade negotiations between the US and China are significant, as they may help to prevent further escalation of the trade dispute and promote a more stable global economy. The meeting between Trump and Xi at the APEC summit is also being closely watched, as it may provide an opportunity for the two leaders to find common ground and work towards a resolution.