China – US – (Special Correspondent / Web Desk) – China and the United States have agreed to hold another round of trade talks next week as both countries try to prevent another costly tariff clash. The world’s two largest economies are once again attempting to find common ground and avoid further harm to global trade.
Last week, Beijing introduced strict controls on its rare earth industry — vital minerals used in electronics and defense equipment. In response, U.S. President Donald Trump warned of imposing 100 percent tariffs on Chinese imports. He even hinted at canceling his planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month.
However, recent developments show both sides are now taking steps toward dialogue. Chinese state media reported that Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent had “open, detailed, and constructive” talks through a video call on Saturday morning. They agreed to meet in person next week to continue discussions. On social media, Bessent described the conversation as “frank and detailed,” expressing hope for progress in the upcoming meeting.
Bessent has previously accused China of harming global markets by restricting rare earth exports, which are key materials used in smartphones, electric vehicles, and military systems. The U.S. Trade Representative, Jamieson Greer, also joined the discussion, according to China’s Xinhua news agency.
Just hours before the call, Fox News released parts of an interview with Trump, confirming he would meet Xi at the APEC summit. Trump admitted that while the 100 percent tariff was “not sustainable,” he claimed it was a necessary move to pressure China.
As Washington seeks to build a united front, the Group of Seven (G7) finance ministers have agreed to coordinate a joint response to China’s export controls. EU economy commissioner Valdis Dombrovskis said the ministers would work together on short-term strategies and find ways to diversify supply sources, acknowledging that the majority of rare earth materials still come from China.
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“We have agreed, both at the G7 level and with the U.S., to coordinate our approach,” Dombrovskis said after meetings in Washington. He added that countries would share updates on their negotiations with China while developing quick solutions to ease the supply crunch.
German Finance Minister Lars Klingbeil said he hopes the upcoming Trump-Xi meeting will ease trade tensions between the two nations. “We made it clear within the G7 that we do not agree with China’s restrictive approach,” he added.
International Monetary Fund (IMF) chief Kristalina Georgieva also expressed optimism that both countries can reach an understanding to cool down the situation. The U.S.-China trade war has flared up again this year after Trump’s return to office, as he announced new tariffs on Chinese goods.
At one stage, tariffs between the two nations reached triple-digit levels, severely disrupting trade as companies awaited a resolution. Though both sides have since reduced some of the taxes, the fragile peace remains uncertain. The upcoming talks will play a key role in determining whether cooperation or confrontation defines the next chapter of U.S.-China trade relations.
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