US-China trade talks advance ahead of Trump-Xi summit
What's the story
The United States and China are making headway in their trade negotiations ahead of the upcoming Trump-Xi meet in Busan on Thursday. The talks mainly revolve around strategic minerals and agricultural purchases. While a comprehensive agreement is not expected, both countries hope to stabilize markets and minimize further economic fallout. The discussions also include export controls and fentanyl tariffs, which have been points of contention in the past.
Negotiation updates
Preliminary consensus reached, says Chinese negotiator
Over the weekend, China's chief trade negotiator, Li Chenggang, announced that a "preliminary consensus" has been reached between Washington and Beijing. US Treasury Secretary Scott Bessent also confirmed this progress, saying there is "a very successful framework." President Donald Trump expressed optimism about the talks, saying Chinese officials "want to make a deal and we want to make a deal."
Ongoing challenges
Rare-earth minerals and soybean purchases
China's dominance in rare-earth minerals, essential for high-tech products like fighter jets and electric vehicles, has been a major sticking point. The country has restricted exports of these elements, affecting US and other foreign companies. Meanwhile, China's suspension of soybean purchases from American farmers this year has further complicated trade relations. However, Bessent hinted at potential relief for American farmers with discussions on "substantial soybean and ag (sic) purchases."
Trade restrictions
Sensitive tech exports and fentanyl tariffs
China is seeking relief from strict US controls on sensitive tech exports. Last month, the US Commerce Department announced a new rule expanding export restrictions to foreign companies and their affiliates owning at least 50% stakes. The move was immediately protested by China. Meanwhile, Trump's fentanyl tariffs have drawn frustration from Beijing due to the lack of progress in reaching an agreement.