China and the United States have agreed to hold another round of trade negotiations next week in an effort to prevent further escalation of their dispute. The two largest economies have been locked in a tit‑for‑tat tariff battle, with the United States threatening to impose 100 percent tariffs on Chinese imports.
The latest development follows China’s announcement of sweeping controls on the rare‑earths industry, which prompted President Donald Trump to threaten retaliatory measures. In a recent interview, however, Trump said he would meet Chinese President Xi Jinping at the Asia‑Pacific Economic Cooperation (APEC) summit in South Korea, contrary to earlier reports that the meeting might be cancelled.
On Saturday, Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent conducted a high‑level video call. Both sides agreed to schedule a new round of trade talks as soon as possible. Chinese state media described the call as “candid, in‑depth and constructive,” while Bessent called it “frank and detailed” on social media.
The United States has accused China of harming the global economy by restricting rare‑earth exports, which are essential for high‑tech products such as smartphones and guided missiles. In response, the U.S. has been working with Group of Seven (G7) finance ministers to coordinate a short‑term response and diversify supply sources. EU Economy Commissioner Valdis Dombrovskis said the G7 ministers have agreed to coordinate their approach and share information on contacts with Chinese counterparts, but he cautioned that diversifying rare‑earth supplies could take years, given China’s current market dominance.
The U.S.–China trade war, which began earlier this year, has seen both countries impose tariffs on each other’s imports. Although tariffs have been reduced in recent months, the truce remains fragile. International Monetary Fund chief Kristalina Georgieva expressed hope for an agreement that would ease tensions, and German Finance Minister Lars Klingbeil said he hopes the upcoming Trump‑Xi meeting can help resolve the conflict.
The forthcoming trade negotiations are significant because they could prevent further escalation of the dispute and promote a more stable global economy. The Trump‑Xi meeting at the APEC summit is also being closely watched as a potential opportunity for the two leaders to find common ground and work toward a resolution.
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