US to hold trade talks with China next week
What's the story
The next round of US-China trade talks is scheduled for next week, with America's Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng leading the negotiations. The discussions aim to de-escalate new measures between the world's two largest economies. Bessent revealed he had a virtual meeting with He on Friday evening, where they had a "frank and detailed" discussion.
Meeting details
Meeting to prepare for Trump-Xi encounter
Bessent announced at a White House event that he and a delegation will meet He in Malaysia, likely next week. The meeting is part of preparations for an upcoming encounter between US President Donald Trump and Chinese President Xi Jinping. China's state-run Xinhua News Agency reported that both sides had a "frank, in-depth, and constructive exchange of views on important issues" during their virtual talks.
Presidential remarks
Talks with China could lead to an agreement: Trump
President Trump has expressed optimism that the upcoming talks with Chinese officials could lead to an agreement. This comes after he had threatened to impose steep tariffs on China. "I think we're doing very well. I think we're getting along with China," Trump said, adding that he was confident his meeting with Xi in South Korea this month would go ahead as planned.
Tariff perspective
Trump had threatened to cancel Xi meeting
Just a week ago, Trump had hinted at the possibility of canceling his first in-person meeting with Xi since returning to the White House. This was due to China's promise to impose sweeping restrictions on key rare-earth elements. He had also announced a 100% import tax on Chinese goods starting November 1. However, during an interview with Fox Business, Trump described the return of high tariffs as "not sustainable."
Trade agreement
US-China trade truce expires in November
Earlier this year, the US and China had a trade truce where Washington suspended 145% tariffs on Chinese goods. In return, Beijing promised to restore the supply of rare-earth magnets. This agreement is due to expire in November. The upcoming talks will be the fifth round of bilateral discussions between Bessent and He, who have previously negotiated in Madrid, Stockholm, London, and Geneva.