The United States and China have signaled plans to keep high-level trade talks on course, as U.S. President Donald Trump prepares for a late-October meeting with Chinese leader Xi Jinping in South Korea, according to Treasury Secretary Scott Bessent.
The upcoming meeting aims to address tensions inflamed last week when China expanded its export controls on rare earth elements and Trump threatened to ramp up U.S. tariffs on Chinese imports, actions that unsettled global markets and strained bilateral relations.
While the rhetoric from both sides remains tough, officials moved to alleviate investors’ concerns over the weekend. Bessent underscored ongoing collaboration between negotiating teams in remarks on Monday, noting that staff-level discussions would take place in Washington this week alongside the annual meetings of the World Bank and the International Monetary Fund.
Bessent emphasized that a proposed 100% tariff hike could still be avoided, and stated that despite last week’s announcement, the relationship is good, and communication channels have reopened. He added that tariff increases would not be implemented until November 1, after the scheduled summit with Xi in Korea is expected to take place.
China’s Commerce Ministry echoed the reassurances in a statement on Tuesday, confirming a working-level meeting had been held on Monday. The ministry also highlighted a series of prior negotiations in London, Stockholm, and Madrid, resulting in a 90-day extension on tariff deadlines. Still, Beijing cautioned that the U.S. cannot ask for talks while simultaneously threatening new restrictive measures.
Over the weekend, officials on both sides sought to deflect blame for the rising risk of a renewed trade war. U.S. Trade Representative Jamieson Greer criticized China’s response to Washington’s outreach amid fresh rare earths controls, branding it a “power grab”. Meanwhile, China rebuked the inclusion of its firms on the U.S. trade blacklist and U.S. port fees targeting Chinese-linked vessels.
