China, US agree to resume trade talks amid renewed tariff tensions

China and the United States agreed on Saturday to hold a new round of trade negotiations in the coming week, signaling a fresh attempt by the world’s two largest economies to prevent another escalation in their trade conflict.

The announcement follows a week of heightened tensions after Beijing imposed sweeping export controls on its rare earths industry, prompting US President Donald Trump to threaten 100 percent tariffs on Chinese imports in retaliation.

Trump had earlier suggested he might cancel a planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month.

However, in a sign of renewed dialogue, Chinese state media reported that Vice Premier He Lifeng and US Treasury Secretary Scott Bessent held “candid, in-depth and constructive exchanges” during a Saturday morning call. Both sides agreed to hold face-to-face talks “as soon as possible.”

Bessent confirmed the development on social media, describing the conversation as “frank and detailed,” and adding that he would meet He “in-person next week to continue discussions.”

US Trade Representative Jamieson Greer also joined the call, according to China’s Xinhua news agency.

Just hours before the talks, Trump told Fox News he would now meet Xi as planned at the APEC summit, raising hopes of easing tensions.

The renewed dialogue comes as Washington seeks to build a coordinated international response to China’s latest export curbs. G7 finance ministers agreed this week to work together on diversifying rare-earth supply chains and sharing information about contacts with Beijing, EU economy commissioner Valdis Dombrovskis said in Washington.

German Finance Minister Lars Klingbeil expressed optimism that the upcoming Trump–Xi meeting could help defuse trade tensions, while IMF Managing Director Kristalina Georgieva said she hoped both sides could reach an agreement soon.

The US-China trade war, which reignited earlier this year after Trump returned to office, has seen tit-for-tat tariffs rise to triple-digit levels at times, disrupting global supply chains. Although both sides have since reduced some duties, their fragile truce remains uncertain.