US, China Economic Chiefs Strengthen Trade Truce Ahead of Trump-Xi Summit in Paris
Top economic officials from the United States and China convened in Paris on Sunday to address ongoing trade issues and facilitate a smooth visit for US President Donald Trump to Beijing later this month. The discussions are critical as both nations seek to reinforce their trade truce ahead of a pivotal meeting between Trump and Chinese President Xi Jinping.
Key Discussions on Trade and Tariffs
The talks, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are expected to focus on several key areas, including adjustments to US tariffs, the export of Chinese rare earth minerals and magnets to the US, American high-tech export controls, and Chinese purchases of US agricultural products.
The negotiations commenced at the Organisation for Economic Co-operation and Development (OECD) headquarters in Paris. Notably, China is not a member of this organization, which consists of 38 predominantly wealthy democracies, and it identifies itself as a developing nation.
U.S. Trade Representative Jamieson Greer is also participating in these discussions, which follow a series of meetings held in various European cities last year aimed at mitigating tensions that nearly led to a collapse of trade between the two largest economies in the world.
Limited Prospects for Major Breakthrough
Analysts specializing in US-China trade have expressed skepticism regarding the potential for significant advancements during these talks. With limited preparation time and the US government’s focus diverted by the ongoing US-Israeli conflict with Iran, expectations for a breakthrough are low, both in Paris and at the upcoming summit in Beijing.
Scott Kennedy, a China economics expert at the Center for Strategic and International Studies, noted that both sides likely aim to maintain dialogue to prevent further escalation of tensions. He indicated that while Trump may seek substantial commitments from China regarding new Boeing aircraft orders and increased purchases of US liquefied natural gas and soybeans, achieving these goals may require concessions on US export controls.
Kennedy further remarked that the summit might yield results that superficially indicate progress but ultimately leave the situation largely unchanged from the past few months.
Future Meetings and Regional Implications
Trump and Xi are expected to meet multiple times throughout the year, including at the APEC summit hosted by China in November and the G20 summit in the US in December. These meetings could provide opportunities for more concrete advancements in trade relations.
The ongoing US-Israeli conflict with Iran is anticipated to be a topic of discussion during the Paris talks, particularly concerning rising oil prices and the strategic significance of the Strait of Hormuz, through which China imports approximately 45% of its oil. Bessent recently announced a 30-day waiver of sanctions to facilitate the sale of Russian oil currently stranded at sea, aiming to boost supply.
In light of recent military actions by the US against Iranian targets, Trump has called on other nations to assist in safeguarding shipping routes in the Strait of Hormuz.
Reviewing the Trade Truce
The discussions will also include a review of the commitments made under the trade truce established in October 2025, which was agreed upon by Trump and Xi during a meeting in Busan, South Korea. This agreement helped to avert a significant escalation in trade tensions, reduced US tariffs on Chinese imports, and temporarily halted China’s strict export controls on rare earth minerals. Additionally, it paused the expansion of a US blacklist targeting Chinese companies that are prohibited from acquiring high-technology US goods, such as semiconductor manufacturing equipment.
China committed to purchasing 12 million metric tons of US soybeans during the 2025 marketing year and an additional 25 million tons in the 2026 season, which will commence with the fall harvest. US officials, including Bessent, have reported that China has thus far fulfilled its commitments under the Busan agreement, citing soybean purchases that have met initial targets.
However, while some sectors are receiving rare earth exports from China, which dominates global production, US aerospace and semiconductor industries are experiencing increasing shortages of critical materials, such as yttrium, which is essential for heat-resistant coatings used in jet engines.
William Chou, a senior fellow at the Hudson Institute, indicated that US priorities at the Paris talks will likely center on enhancing agricultural purchases by China and securing greater access to Chinese rare earth materials in the short term.
Source: www.arnnewscentre.ae
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Published on 2026-03-15 14:48:00 • By the Editorial Desk
