Chinese Vice Premier He Lifeng held a video conference with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer to discuss ongoing economic tensions and trade issues ahead of a planned summit between Chinese President Xi Jinping and U.S. President Donald Trump scheduled for September.
During the call, China expressed “serious concern” over recent U.S. economic and trade restrictions imposed on Chinese companies and industries, according to a statement released by the state news agency Xinhua. The officials engaged in what the statement described as “candid, in-depth and constructive” discussions focused on implementing agreements reached during the previous meeting between Xi and Trump in Beijing.
Bessent emphasized the expectation that China will fulfill its commitments related to rare earth materials and agricultural exports to the United States. He also highlighted ongoing efforts to utilize the Trade and Investment Boards as a forum to promote progress toward a more balanced and fair economic relationship between the two countries.
Despite these talks aimed at solidifying cooperation, both sides have recently introduced new economic measures perceived as escalatory. The U.S. administration announced bans on imports of Chinese-made robots and power inverters, citing national security concerns and vulnerabilities within supply chains. This move follows a broader pattern of trade restrictions, including tariffs targeting China and 59 other economies, enacted over allegations of forced labor, which introduced a 12.5 percent tariff on Chinese imports shortly before a temporary 10 percent levy was set to expire.
Additionally, the U.S. is conducting a separate investigation under Section 301 focused on addressing excess industrial capacity in 16 countries, including China. These actions signify continuing friction amid ongoing trade dialogue.
On the rare earths front, shipments of permanent magnets from China to the United States have declined steadily, dropping 22.5 percent in the first two months of the year compared to the previous year. This downturn persists despite a temporary agreement reached in Busan last year aimed at easing supply tensions.
Sources familiar with the situation suggest that while these recent economic restrictions add complexity, they are not expected to derail the negotiations or the planned visit by President Xi to the United States. Both sides appear committed to advancing dialogue to achieve tangible outcomes as the summit approaches.