China and U.S. Agree to New Round of Trade Talks Amid Rare Earths Dispute

Oct 2025 : China and the United States have agreed to hold another round of trade negotiations next week, as the world’s two largest economies seek to prevent a renewed cycle of retaliatory tariffs that could escalate tensions further.

The agreement comes after Beijing last week announced sweeping controls on its critical rare earths industry—an essential sector for products ranging from smartphones to guided missiles. In response, U.S. President Donald Trump threatened to impose 100 percent tariffs on Chinese imports and had also suggested canceling his anticipated meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

In a sign of ongoing efforts to resolve the dispute, Chinese state media reported that Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent engaged in a “candid, in-depth and constructive” phone call on Saturday morning. Both officials agreed to conduct a new round of trade discussions “as soon as possible.” Bessent described the talks on social media as “frank and detailed” and confirmed that he would meet with Chinese officials in person next week to continue discussions.

During the call, Bessent reiterated prior U.S. concerns that China’s tightened restrictions on rare earths could negatively impact the global economy. The rare earths are critical to numerous high-tech industries, and U.S. Trade Representative Jamieson Greer also participated in the conversation, according to Xinhua. Hours earlier, Fox News reported that Trump had confirmed he would still meet Xi at the APEC summit, signaling a willingness to de-escalate tensions.

Coordinated International Response

The high-level dialogue comes as Washington coordinates with Group of Seven (G7) finance ministers to respond to China’s export controls. While a long-term solution will require years, officials agreed to implement short-term measures, including diversifying rare earth suppliers. The European Union’s Economy Commissioner, Valdis Dombrovskis, noted that the majority of rare earth supplies come from China, meaning full diversification will take time. He added that G7 members would exchange information on their contacts with China as they explore interim solutions.

German Finance Minister Lars Klingbeil expressed hope that the meeting between Trump and Xi could help resolve much of the ongoing trade conflict. “We have made it clear within the G7 that we do not agree with China’s approach,” he stated, referring to the bloc of Britain, Canada, France, Germany, Italy, Japan, and the United States. International Monetary Fund Chief Kristalina Georgieva also expressed optimism for an agreement that could ease tensions.

The U.S.-China trade war, which reignited earlier this year, saw tariffs reach triple-digit levels at one point, effectively stalling trade as businesses awaited clarity. While both countries have since scaled back their respective levies, the truce remains fragile. The upcoming negotiations and Trump-Xi meeting represent a crucial opportunity to stabilize the trade relationship and prevent further economic disruption.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)