China and the United States have agreed to hold a new round of trade negotiations in the coming week, in a bid to ease tensions between the world’s two largest economies and prevent another damaging tariff standoff.
The development follows Beijing’s recent announcement of sweeping controls on its rare earths industry — a move that drew sharp criticism from Washington. In response, U.S. President Donald Trump threatened to impose 100 percent tariffs on Chinese imports and hinted at canceling his expected meeting with Chinese President Xi Jinping later this month in South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
In what appears to be a de-escalation effort, Chinese state media reported on Saturday that Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent held a “candid, in-depth and constructive” video call earlier in the day. Both sides, the report said, agreed to convene another round of trade talks “as soon as possible.”
Bessent confirmed the discussion on social media, describing the exchange as “frank and detailed,” and adding that the two would meet “in person next week to continue our discussions.”
Also on the call was U.S. Trade Representative Jamieson Greer, according to China’s official Xinhua news agency.
Bessent had previously accused Beijing of attempting to “harm the rest of the world” by tightening restrictions on rare earth exports — materials essential for producing everything from smartphones to guided missiles.
Meanwhile, in an interview released Friday by Fox News, Trump appeared to soften his tone, confirming he would proceed with his planned meeting with Xi at the APEC summit.
“It’s not sustainable, but that’s what the number is… They forced me to do that,” Trump said, referring to the 100 percent tariff proposal.
Coordinated Global Response
The high-level U.S.-China call came as Washington sought support from its Group of Seven (G7) allies to coordinate a response to Beijing’s export curbs.
EU Economy Commissioner Valdis Dombrovskis said the G7 finance ministers agreed to develop a joint approach and diversify sources of rare earths, although he cautioned that such efforts could take years given China’s dominance in global supply.
“We agreed, both bilaterally with the U.S. and at the G7 level, to coordinate our approach,” Dombrovskis told reporters in Washington following the International Monetary Fund and World Bank’s fall meetings.
German Finance Minister Lars Klingbeil also voiced hope that the anticipated Trump–Xi meeting could ease the long-running trade dispute.
“We have made it clear within the G7 that we do not agree with China’s approach,” Klingbeil said.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva similarly expressed optimism that renewed talks might help stabilize global trade relations.
The renewed dialogue marks the latest effort to end a protracted trade war that reignited earlier this year after Trump’s return to office. At its height, tariffs between the two economic giants reached triple-digit levels, paralyzing sections of global commerce before partial rollbacks brought temporary relief.
Despite recent efforts to thaw relations, analysts warn that U.S.-China trade ties remain fragile, with both sides still navigating deep strategic and economic mistrust.
