Bessent claims Trump will meet Xi Jinping in South Korea
U.S. President Donald Trump is set to meet with Chinese leader Xi Jinping in South Korea in late October, as both parties aim to ease tensions surrounding trade disputes, according to U.S. Treasury Secretary Scott Bessent on Monday. The most recent rupture came after China’s announcement on Thursday regarding a significant expansion of its rare earths export controls. That prompted a strong response from Trump on Friday, causing markets and relations between the world’s two largest economies to spiral. Bessent stated that there were significant communications between the two parties over the weekend, and additional meetings were anticipated. “We have substantially de-escalated,” Bessent stated during an interview.
“President Trump stated that the tariffs would not be implemented until November 1.” He is scheduled to meet with Party Chair Xi in Korea. “I believe that meeting will still be on.” Trump and Xi had arranged to meet at the Asia-Pacific Economic Cooperation forum summit, which South Korea is hosting in late October. The dollar saw a slight increase on Monday as investors expressed optimism that the U.S. would mitigate its recent intensification of the trade conflict with China following Friday’s market downturn. Bessent stated that U.S.-China staff-level meetings are scheduled for this week in Washington, coinciding with the annual gatherings of the World Bank and International Monetary Fund.
“The 100% tariff does not have to happen,” Bessent stated. “The relationship, despite this announcement last week, remains positive. Lines of communication have reopened, so we’ll see where it goes.” Bessent characterized the move by China as provocative, noting that the U.S. responded with considerable force. He stated that the United States has been in contact with allies and anticipates support from the Europeans, India, and democracies in Asia. “China is a command and control economy.” Bessent stated “They are neither going to command nor control us.” On Sunday, China accused the United States of escalating trade tensions, labeling Trump’s recent threat of 100% tariffs on Chinese goods as hypocritical. It justified its restrictions on the export of rare earth elements and related equipment. China holds a commanding position in the market for these elements, which are crucial for tech manufacturing.
Under China’s new regulations, foreign companies producing certain rare earths and related magnets on the list will now require a Chinese export licence if the final product includes or is manufactured with Chinese equipment or material. This holds true even if the transaction does not involve any Chinese companies. Bessent stated in the interview that the United States would reject licensing requirements from China. Trump’s unexpected broadside on Friday shook global financial markets, causing the benchmark S&P 500 Index to slide by more than 2%, marking its largest one-day drop since April, when a continuous stream of tariff announcements by Trump fueled market volatility.
