Plans for a meeting between United States President Donald Trump and Chinese President Xi Jinping remain on track despite rising trade tensions between the two nations, according to US Treasury Secretary Scott Bessent.
Speaking with Fox Business Network, Bessent emphasized that the US and China had seen a significant de-escalation after a series of escalating trade actions that had put substantial strain on their relationship.
The comments come in the wake of President Trump’s recent announcement of a 100 percent tariff on Chinese imports, set to take effect on November 1, following China’s decision to tighten export controls on crucial rare earth minerals on October 9.
However, Bessent noted that extensive communication between the two nations has occurred, with further staff-level meetings anticipated in the near future.
“Despite last week’s announcement, the relationship is good,” Bessent said. “Lines of communication have reopened, so we’ll see where it goes.” He further suggested that the implementation of the proposed 100 percent tariff might be avoided if negotiations yield positive results.
The planned meeting of Trump and Xi at the Asia-Pacific Economic Cooperation (APEC) forum in South Korea later this month is expected to proceed as scheduled, with Bessent confirming, “He [Trump] will be meeting with [Communist] Party Chair Xi in Korea. I believe that meeting will still be on.”
Bessent highlighted the positive rapport between Trump and Xi, implying that the recent Chinese policy on rare earth elements could have come from a lower-level official rather than a directive from Xi himself.
President Trump echoed this optimistic sentiment in a recent statement, expressing confidence in the US-China relationship. In a post on Truth Social, Trump stated, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The USA wants to help China, not hurt it!”
Trump’s remarks seemed to ease market anxiety, contributing to a rally on Wall Street and a rebound in US stocks following the previous Friday’s tariff announcement that had triggered a market downturn.
Despite the apparent thaw in relations, Bessent criticized China’s new export controls, describing them as provocative. He asserted that the United States is committed to responding firmly.
“They have pointed a bazooka at the supply chains and the industrial base of the entire free world,” Bessent said. “And, you know, we’re not going to have it. China is a command and control economy. They are neither going to command [nor] control us.”
Bessent also mentioned that the US has been in contact with its allies and anticipates support from countries in Europe, India, and Asia amidst the unfolding trade tensions.
On the other hand, China has defended its new export regulations, which necessitate approval from the Chinese government for foreign companies intending to export products containing Chinese rare earth elements. Foreign firms must also disclose their intended use of these products.
China’s Ministry of Commerce has stated that these enhanced restrictions were a response to a series of actions taken by the US, including the blacklisting of Chinese firms and the imposition of port fees on ships linked to China that were discussed in the latest round of trade talks in Madrid, Spain.
In its defense, Beijing accused Washington of engaging in “provocative and damaging” actions, labeling Trump’s tariff threat as a striking example of double standards.
China maintains a near monopoly on rare earth minerals, which are essential for producing a range of technologies, including electric vehicles and smartphones, as well as military applications.
With the US relying heavily on these crucial materials in its defense industry, the stakes in the ongoing trade conflict remain exceptionally high.
image source from：aljazeera
