U.S.-China Trade Tensions: Trump and Xi's Pivotal Meeting Looms

U.S. Treasury Secretary Scott Bessent confirmed plans for President Trump and Chinese leader Xi Jinping to meet in South Korea, as both nations attempt to diffuse trade tensions. Amidst tariff threats and rare earth export control expansions, efforts are being made to ensure continued communication and negotiation.

U.S. President Donald Trump and Chinese leader Xi Jinping are scheduled to meet in South Korea in late October, according to U.S. Treasury Secretary Scott Bessent. The meeting aims to reduce tensions after China announced an expansion of rare earth export controls and Trump threatened increased tariffs.

Bessent, along with China's Commerce Ministry, sought to reassure investors of ongoing cooperation between the two countries. Despite tough rhetoric, both sides are exploring possibilities to move beyond the current tariff truce. Bessent highlighted ongoing communications and upcoming meetings in Washington amidst the annual World Bank and IMF gatherings.

While markets initially reacted negatively to escalating tensions, recent statements from both nations have helped stabilize them. Bessent emphasized that further tariffs might be avoided and expressed optimism about a successful meeting between Trump and Xi that could lead to a breakthrough in trade negotiations.

(With inputs from agencies.)