As China tightens export controls on rare earths and the United States signals an additional 100% tariff on China, heightening tensions between the two countries, the top economic officials of the U.S. and China moved to communicate.
Xinhua News Agency reported on Oct. 18 morning that He Lifeng, vice premier of the China State Council, held a video call with U.S. Treasury Secretary Scott Bessent and Jamieson Greer of the Office of the United States Trade Representative (USTR).
Xinhua said, "(The U.S. and Chinese representatives) put at the center the implementation of important agreements reached in the currency between the two countries' leaders this year and engaged in frank, in-depth, and constructive exchanges on important issues in bilateral economic and trade relations," adding that the two sides agreed to hold economic and trade talks.
U.S. Treasury Minister Scott Bessent also mentioned the schedule for a currency with Chinese Vice Premier He Lifeng at the U.S.-Ukraine summit held at the White House on Oct. 17 (U.S. time), saying, "The (U.S. and Chinese) delegations will meet in Malaysia a week from tomorrow to prepare for the two leaders' meeting."
U.S. President Donald Trump and Chinese President Xi Jinping have been considering visiting Korea to hold talks on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit to be held in Gyeongju on Oct. 31, and ahead of that, the top economic officials of the two countries decided to hold a face-to-face meeting to coordinate the summit agenda.
Minister Bessent said, "I think (bilateral) tensions have eased," adding, "We hope China will show us the respect we have shown China."
There is also speculation that the currency and meeting between the two economic chiefs could be a sign of improving U.S.-China relations. Minister Bessent and Vice Premier He served as communication channels amid bilateral tensions, including helping to draw a de facto "truce" agreement through talks after the U.S. and China started a tariff war in April by imposing ultra-high tariffs of more than 100% on each other.
President Trump also sent a conciliatory message toward China. In a Fox Business interview reported that day, regarding whether a U.S.-China summit would be held, Trump said, "I will meet President Xi within two weeks," and, while insisting that the 100% tariff he said would be imposed starting Nov. 1 was an inevitable decision, he also said it was "unsustainable."