US President Donald Trump is expected to meet Chinese President Xi Jinping in South Korea later this month, Treasury Secretary Scott Bessent said, despite strained relations between the two countries over a new trade war.
Tensions have risen after China expanded controls on rare earth metals exports, to which Trump responded with a threat of 100% tariffs. But Bessent said bilateral communication had been restored and the two sides were working to defuse the conflict ahead of the APEC summit in Seoul.
The US dollar strengthened as investors held out hope that Washington would defuse the situation. The US and China will also hold official-level talks in Washington this week on the sidelines of the World Bank and IMF meetings.
China hit back at the US accusations, defending its export controls and calling Trump's tariffs hypocritical. Beijing also said foreign companies using Chinese materials or equipment must obtain new export licenses.
Bessent insisted that the US would reject the rules, adding that Washington had the support of international allies. Meanwhile, global markets remain cautious after Trump's surprise tariff move caused the S&P 500 to fall more than 2%.
