China and the United States agreed on Saturday to hold a new round of trade talks in the coming week to avoid another damaging tariff battle. The agreement came after a video call between Beijing’s chief negotiator, Vice Premier He Lifeng, and US Treasury Secretary Scott Bessent, with state media describing the call as “candid, in-depth and constructive.”
Last week, Beijing imposed controls on the rare earths industry, prompting US President Donald Trump to threaten 100% tariffs on Chinese imports.
Bessent called the discussion “frank and detailed” and said they would meet in person next week, as US Trade Representative Jamieson Greer also joined the call.
International Response
Before the call, Trump told Fox News he would meet Chinese President Xi Jinping in South Korea later this month on the sidelines of the at the APEC summit, calling the 100% tariff threat “not sustainable.” However, the call occurred as Washington rallied G7 finance ministers to respond to China’s export controls. The ministers agreed to coordinate responses and diversify suppliers, EU’s Dombrovskis said, noting that diversification could take years.
Moreover, German Finance Minister Lars Klingbeil expressed hope that the Trump-Xi meeting could resolve much of the trade conflict, with IMF chief Kristalina Georgieva also hoping for an agreement to cool tensions.
The US-China trade war reignited this year with Trump’s tariff threats. While both sides have since lowered levies, their truce remains shaky.
