US-China Trade Talks Set Amid Tariff Tensions and Rare Earth Limits

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng have agreed to hold a new round of economic and trade talks in person next week, following a tense week in US-China relations. The agreement came during a Saturday video call between the two officials, signaling a potential thaw in recent trade frictions.

The discussion focused on implementing the agreements reached by the US and Chinese leaders earlier this year, as well as addressing key issues in bilateral trade. Both sides described the exchange as candid, detailed, and constructive.

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Tensions escalated recently after China expanded its rare earth export restrictions on October 10, now including minerals used for military purposes. The move prompted US President Donald Trump to threaten a 100% tariff on Chinese imports. However, Trump later tempered his stance, suggesting such a drastic tariff increase might not be sustainable.

The upcoming in-person talks aim to stabilize trade relations and prevent further escalation. This development comes as both Washington and Beijing seek clearer economic cooperation amid global supply chain pressures and strategic resource concerns.

The renewed dialogue reflects the ongoing effort to maintain balance in the world’s two largest economies, even as disputes over trade policies, technology, and strategic minerals continue to create friction.