China and the United States have agreed to restart trade negotiations next week in a renewed bid to ease growing economic tensions between the two powers.
The move comes after Beijing imposed new restrictions on rare earth exports — materials vital for electronics and defense manufacturing — prompting US President Donald Trump to threaten sweeping 100 percent tariffs on Chinese goods.
Although Trump had previously hinted he might skip his planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, he later confirmed the talks will proceed.
Chinese state media reported that Vice Premier He Lifeng and US Treasury Secretary Scott Bessent held a “frank and productive” virtual conversation on Saturday, joined by US Trade Representative Jamieson Greer. Both sides agreed to meet face-to-face soon to continue negotiations.
Bessent, who has accused China of using its control over rare earth exports to pressure other nations, described the discussion online as “detailed and forward-looking.”
In parallel, Washington is coordinating with other Group of Seven (G7) economies to craft a united response to China’s export measures. EU economy commissioner Valdis Dombrovskis said the group plans to diversify suppliers and exchange information as part of short-term mitigation efforts.
German Finance Minister Lars Klingbeil voiced optimism that a meeting between Trump and Xi could ease the trade standoff, while IMF chief Kristalina Georgieva called for an agreement to calm global market jitters.
The trade rift between both nations, which flared up again this year following Trump’s return to office, has seen steep tariff hikes and supply disruptions. Although some duties have since been rolled back, the fragile peace remains uncertain as both sides prepare to resume talks.
