Beijing and Washington agreed on Saturday to prepare for new negotiations between the leaders of the world’s two largest economies and avoid another destructive escalation of customs tariffs. US Treasury Secretary Scott Bessent announced on Friday a meeting with Chinese Vice Premier He Lifeng, responsible for trade, next week to prepare for these negotiations, and Beijing said it was ready on Saturday to begin them “as soon as possible.”
Trade tensions between the world’s two largest economies have increased somewhat over the past week, following Beijing’s announcement to strengthen controls on exports of rare earths and the technologies necessary for their refining. The Chinese announcement was harshly criticized by US President Donald Trump, who immediately announced his desire to add, in retaliation, 100% customs duties on Chinese products, which would be added to the minimum 30% applied until now.
Donald Trump also threatened not to meet with his Chinese counterpart, Xi Jinping, as planned during the next summit of the Asia-Pacific Economic Cooperation Forum (Apec).
Scott Bessent, for his part, spoke of “frank and detailed” discussions about X, announcing an in-person meeting “next week to continue (the) discussions.” Scott Bessent previously accused China of trying to harm the rest of the world by tightening restrictions on rare earths, which are essential for many economic sectors from smartphones to guided missiles. US Trade Representative Jamieson Greer also participated in the call, according to the Chinese news agency.
A few hours earlier, the American network Fox News published excerpts from an interview with Donald Trump in which he indicated that he should finally meet with his Chinese counterpart Xi Jinping at the Apec summit at the end of the month. The US president told the channel that 100% tariffs on Chinese products were unsustainable. “It’s not sustainable, but that’s the number that was set… They forced me to do this,” he said.
Access to rare earths
Washington tried this week to regroup its allies. The G7 Finance Ministers decided on Friday to coordinate the response of the seven countries to the new challenge posed by restrictions on their economies’ access to rare earths.
“We have agreed, bilaterally with the United States and within the framework of the G7, to coordinate our approach and inform each other of our exchanges with our Chinese counterparts,” European Economic Commissioner Valdis Dombrovskis told reporters. “The G7 has expressed its disagreement with the Chinese approach,” confirmed German Finance Minister Lars Klingbeil during a meeting with journalists.
Trade tensions between both countries increased with the return of Donald Trump to the White House and his desire to impose customs tariffs on all products entering the United States in early April. Beijing then decided to respond, prompting further retaliation from Washington, to which China responded in turn, resulting in reciprocally applied customs duties well beyond 100%. The two countries then began to reduce tension, but relations remain tense.
Source: BFM TV
