US Treasury Secretary Scott Bessent said American officials pressed China on rare earths and farm goods commitments during a bilateral call, as Washington and Beijing prepare for a planned summit between President Donald Trump and Chinese leader Xi Jinping. The remarks, reported early Friday, underline how critical minerals have become the sharpest edge of the US-China trade confrontation.
Speaking to Fox Business, Bessent said the US side used the call to push Beijing to follow through on commitments related to rare earths and agricultural purchases, according to reports. The conversation was part of a broader effort by Washington to lock in trade concessions before the leaders meet in person, with multiple outlets reporting that the Trump-Xi summit is expected to take shape in September.
China pushed back during the exchange. A Chinese vice premier voiced “serious concern” over the latest US trade restrictions in the call, according to reports from the region, signaling that Beijing is unwilling to accept new measures without a fight. The response echoed China’s official line that the US restrictions harm global supply chains and violate the spirit of earlier trade agreements.
The call comes after weeks of escalating measures on both sides. China has imposed export curbs on rare earths and other critical minerals, which the International Energy Agency has warned put around $6.5 trillion of global output at risk. The United States, in turn, has tightened restrictions on technology exports and signaled it is prepared to respond to any Chinese retaliation with further tariffs.
Senior officials from both countries have held a series of preparatory talks ahead of the summit, with trade, rare earths and regional security on the agenda. Washington has also been pressing allies to reduce dependence on Chinese mineral processing, while Beijing has sought to use its near-monopoly on rare earth refining as leverage in negotiations.
The stakes are high for global markets. Fitch recently cut its estimate of the US effective tariff rate to 7.4%, but analysts caution that a failure of the Trump-Xi talks could push the rate higher and reignite inflation, complicating the Federal Reserve’s path. Exporters from New Zealand dairy to Swiss machinery have already flagged the burden of new US duties, and investors are watching for signs of a breakthrough or a fresh escalation ahead of the summit.
For now, both sides are signaling willingness to talk while holding their leverage close. Bessent’s comments suggest Washington sees the call as a step toward a deal, but Beijing’s pointed response shows the distance that remains between the world’s two largest economies.
Sources: The Japan Times, Reuters via MarketScreener, CNA
Author: Finance Desk
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