US Treasury chief to meet China counterpart as tensions flare
WASHINGTON: US Treasury Secretary Scott Bessent said on Friday (Oct 17) that he expects to meet Chinese Vice Premier He Lifeng next week to prepare for an upcoming summit between US President Donald Trump and Chinese President Xi Jinping, as tensions rise over Beijing’s new export curbs on rare earths.
Bessent said the two would first speak by phone later on Friday before meeting in Malaysia next week to lay the groundwork for the presidential talks.
His comments came after Trump threatened to impose a 100 per cent tariff on Chinese imports and to cancel talks following Beijing’s announcement of tightened export controls on rare earth minerals. The move drew swift condemnation from Washington, which accused Beijing of weaponising trade.
TRADE TENSIONS AND DIPLOMATIC PRESSURE
Bessent told reporters at the White House that he believed “things have de-escalated” between Washington and Beijing and that preparations for a face-to-face meeting were back on track.
Trump later confirmed in an interview with Fox News that he would meet Xi at the Asia-Pacific Economic Cooperation (APEC) summit, despite his earlier threat to withdraw.
The renewed engagement follows weeks of heightened trade friction, with the Group of Seven (G7) finance ministers vowing to coordinate their response to China’s export restrictions.
“Diversifying suppliers will take time, as China controls the vast majority of rare earth supplies,” said EU economy commissioner Valdis Dombrovskis, after the G7 met in Washington this week.
German Finance Minister Lars Klingbeil said he hoped the Trump-Xi meeting would help resolve “much of the US-China trade conflict,” adding that the G7 nations stood united in opposing China’s approach.
IMF CALLS FOR DE-ESCALATION
International Monetary Fund chief Kristalina Georgieva expressed optimism that both sides could find common ground.
“We hope the United States and China can reach an understanding that contributes to global stability,” she said.
Bessent, who has accused China of “hurting the world economy” through its rare earth controls, said the upcoming meeting would focus on restoring trade flows and preventing escalation.
UNEASY TRUCE
Trade tensions between Washington and Beijing have reignited this year after Trump imposed sweeping tariffs on Chinese imports, prompting tit-for-tat retaliation.
At one point, tariffs on both sides rose to triple-digit levels, halting trade in several key sectors.
Although both countries have since lowered some duties, their uneasy truce remains fragile, with analysts warning that a breakdown could again disrupt global supply chains.
