WASHINGTON: US President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October according to Treasury Secretary Scott Bessent.
The planned meeting aims to de-escalate tensions over tariff threats and export controls between the world’s two largest economies.
Bessent confirmed substantial communications occurred between both sides over the weekend with more meetings expected.
“We have substantially de-escalated,“ Bessent stated during his Fox Business Network interview.
He emphasised that Trump’s threatened tariffs would not take effect until November 1 allowing time for diplomatic resolution.
The leaders plan to meet during South Korea’s Asia-Pacific Economic Cooperation forum summit later this month.
China’s Commerce Ministry confirmed it had notified the United States in advance about tightening rare earth controls.
The ministry spokesperson warned that America cannot demand talks while simultaneously threatening new restrictive measures.
Asian stocks showed tentative recovery following Wall Street gains after Bessent’s reassurance about continuing negotiations.
Trump’s Friday tariff threat had triggered significant market sell-offs amid existing investor anxiety about AI-driven market froth.
Bessent revealed staff-level US-China meetings will occur this week in Washington during World Bank and IMF gatherings.
“The 100% tariff does not have to happen,“ Bessent asserted while describing the overall relationship as good despite recent tensions.
He characterised China’s rare earth announcement as provocative but noted communication channels have reopened.
The Treasury Secretary said the United States expects support from European allies, India, and Asian democracies regarding China’s actions.
“China is a command-and-control economy,“ Bessent remarked, adding they would neither command nor control the United States.
China defended its rare earth export controls while calling Trump’s threatened 100% tariffs hypocritical on Sunday.
New Chinese regulations now require foreign companies to obtain export licenses if their products contain Chinese rare earth materials or equipment.
Bessent confirmed the United States would reject China’s licensing requirements during his television interview. – Reuters
