Plans for a meeting between U.S. President Donald Trump and Chinese President Xi Jinping remain on track for late October in South Korea.
This development follows recent trade disputes, including China’s expanded export controls on rare earth minerals and Trump’s threat of 100 percent tariffs on Chinese goods.
U.S. Treasury Secretary Scott Bessent described the situation as “substantially de-escalated” after weekend communications.
The talks aim to avert a full-scale trade war between the world’s two largest economies.
Bessent highlighted ongoing negotiations, with staff-level meetings scheduled this week in Washington during the World Bank and IMF gatherings.
He noted that the threatened tariffs, set for November 1, may not materialize if talks progress.
China’s Commerce Ministry confirmed a working-level meeting occurred Monday, building on prior negotiations in London, Stockholm, and Madrid.
Both sides expressed cautious optimism, with Bessent stating, “The relationship, despite this announcement last week, is good.”
China’s new export controls on rare earth minerals, critical for technology and defense industries, prompted Trump’s tariff threat.
Beijing defended its policy as a response to U.S. actions, including blacklisting Chinese firms and imposing port fees on China-linked ships.
Bessent criticized China’s controls as a “bazooka” aimed at global supply chains, asserting U.S. resistance to China’s “command-and-control” economy.
China’s Commerce Ministry accused the U.S. of “provocative and damaging” actions, warning against simultaneous threats and talks.
Despite the rhetoric, Wall Street rebounded Monday, with indexes rising up to 2.2 percent, and Asian markets saw gains Tuesday, reflecting hope for a resolution.