Beijing and Washington agree to hold new trade talks

Yesterday, Beijing and Washington agreed to hold a new round of trade talks next week between the world’s two largest economies, avoiding another devastating tariff battle.

US Treasury Secretary Scott Besent said the day before yesterday that he would meet his Chinese counterpart, Deputy Prime Minister He Lifeng, next week, while Beijing announced yesterday its readiness to begin these negotiations as soon as possible.

Trade tensions between Washington and Beijing escalated last week, after Beijing announced that it would tighten controls on rare earth exports.

The Chinese announcement sparked sharp criticism from Trump, who confirmed his intention to impose 100% tariffs on Chinese products, in addition to the current tariffs of no less than 30%.

Trump threatened not to meet his Chinese counterpart, Xi Jinping, at the Asia-Pacific Economic Cooperation (APEC) summit.

Yesterday, the New China News Agency (Xinhua) reported that a phone call between China’s chief negotiator, He Leveng, and US Treasury Secretary Scott Besent resulted in frank, in-depth and constructive discussions.

In turn, Besant, via the X platform, indicated frank and detailed discussions, announcing that he will meet his counterpart Living next week, to continue negotiations.

Besant accused China of seeking to harm the rest of the world by tightening restrictions on rare earths, which are essential to many economic sectors, from smartphones to guided missiles.

US Trade Representative Jameson Greer participated in the call, according to the Chinese News Agency.

A few hours ago, the American Fox News station published excerpts from an interview with Donald Trump, in which he said that he was supposed to meet his Chinese counterpart, Xi Jinping, at the Asia-Pacific Economic Cooperation (APEC) summit at the end of the month.

Trump stressed that imposing 100% tariffs on Chinese products is not a viable measure for a long time.

It’s not viable for a long time, but that’s the number, they forced me to do it, he said.

This week, Washington sought to unify the position of its allies. Last Friday, the Finance Ministers of the Group of Seven countries decided to coordinate their countries’ response to the new challenge imposed by China to obtain rare metals and its impact on their economies.

European Union Economic Affairs Commissioner Valdis Dombrovskis said in a press statement: We have reached an agreement, whether bilaterally with the United States or within the G7, to coordinate our approach and inform each other of the results of our discussions with our Chinese counterparts.

German Finance Minister Lars Kligbel said during a meeting with journalists: The G7 countries expressed their disagreement with the Chinese approach.

The Director-General of the International Monetary Fund, Kristalina Georgieva, said on Friday that she hopes to reach an agreement quickly to ease trade tensions between Beijing and Washington.

Trade tension between the two countries escalated with the return of Donald Trump to the White House and his desire to impose customs duties on all American imports. Beijing then decided to respond, which prompted Washington to take further retaliatory measures, and China responded in turn, which led to the fees imposed by both sides exceeding 100%.

The two countries then began to reduce the escalation, but relations between them are still tense.

• Trade tensions between Washington and Beijing escalated last week, after Beijing announced that it would tighten controls on rare earth exports.