Chinese President Xi Jinping and US President Donald Trump. Their countries are locked in heated disagreements over trade and security. Picture: AP
U.S. Treasury Secretary Scott Bessent has confirmed that President Donald Trump is prepared to meet with Chinese President Xi Jinping in South Korea later this month. This meeting comes as both nations navigate escalating trade tensions, and Bessent emphasized that the U.S. does not seek to escalate the conflict.
During a recent event with CNBC, Bessent stated that officials from both the United States and China are in daily contact to finalize the arrangements for the meeting. He highlighted the importance of maintaining economic ties, indicating that Washington is keen on avoiding a complete decoupling from the world’s second-largest economy.
The trade relationship between the two countries faced significant strain last week after China announced an expansion of its rare earths export controls. This announcement raised concerns that both nations might be heading towards a full-scale trade war. In response, President Trump threatened to increase tariffs on Chinese goods to levels not seen before, leading to heightened volatility in financial markets and intensifying U.S.-China relations.
Bessent, along with other officials, has been engaged in a series of interviews aimed at stabilizing the situation. On Wednesday, he noted that China had been preparing to take action for some time, countering a Chinese claim that their recent moves were in reaction to U.S. actions.
In his remarks to CNBC, Bessent revealed that a lower-level Chinese trade official had issued a stark warning about potential repercussions if the U.S. proceeded with port fees for Chinese ships scheduled for August. “There was a lower-level trade person who was slightly unhinged here in August … saying that China would unleash chaos on the global system if the U.S. went ahead with our docking fees for Chinese ships,” Bessent said.
As preparations for the upcoming meeting continue, both nations appear to be making efforts to reduce tensions. The outcome of the talks in South Korea could play a critical role in shaping the future of U.S.-China trade relations, as both sides navigate the complexities of their economic partnership in a rapidly changing global landscape.
