China, US Agree to Resume Trade Talks Amid Rising Tensions

Beijing and Washington have agreed to hold a new round of trade negotiations next week, signaling fresh efforts by the world’s two largest economies to ease escalating tensions and avoid another bruising tariff war.

The agreement followed a high-level phone call on Saturday between Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent, during which both sides held what Chinese state media described as “candid, in-depth and constructive exchanges.”

According to state news agency Xinhua, the two officials agreed to meet “as soon as possible” for further discussions. Bessent later confirmed on social media that the talks had been “frank and detailed,” adding that both sides would meet in person next week to continue negotiations.

The development comes amid renewed economic friction after Beijing announced sweeping export controls on the critical rare earths industry last week — a move that drew sharp criticism from Washington. In response, US President Donald Trump threatened to impose 100 percent tariffs on Chinese imports and warned he could cancel his planned meeting with President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

However, in an interview with Fox News released just hours before the call, Trump confirmed that the meeting with Xi would go ahead, while admitting that the threatened tariff level was not viable in the long term.

“It’s not sustainable, but that’s what the number is… They forced me to do that,” Trump said.

The dispute over rare earths — vital materials used in electronics, renewable energy, and defense systems — has triggered concerns of a global supply shock. Bessent had previously accused China of “weaponising” exports to harm global industries.

Also participating in the call was US Trade Representative Jamieson Greer, who joined discussions on possible pathways to de-escalate trade tensions, according to Xinhua.

Meanwhile, Group of Seven (G7) finance ministers have agreed to coordinate a joint response to China’s export restrictions. The EU’s economy commissioner, Valdis Dombrovskis, told reporters in Washington that the G7 would work together to diversify supply chains, though he cautioned that reducing reliance on Chinese exports could take years.

“We agreed, both bilaterally with the US and at the G7 level, to coordinate our approach,” Dombrovskis said after meetings on the sidelines of the IMF and World Bank fall sessions.

German Finance Minister Lars Klingbeil said he hoped the upcoming Trump–Xi meeting would help “resolve much of the US-China trade conflict,” while IMF chief Kristalina Georgieva also urged both sides to reach an agreement to cool trade tensions that have unsettled global markets.

The US-China trade war, reignited earlier this year after Trump returned to office and reintroduced sweeping tariffs, had at one point escalated into triple-digit levies, freezing trade between the two nations. While both sides have since scaled back some tariffs, their fragile truce remains under strain as geopolitical and economic pressures intensify.

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