Trump is a 'go' on meeting with Xi: US Treasury Secy amid China tensions

Scott Bessent said both Trump and Xi have an 'excellent relationship', adding that the level of trust between the two leaders is the reason that things have not escalated further

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US Treasury Secretary Scott Bessent on Wednesday (local time) expressed confidence in trade talks with China, adding that President Donald Trump still plans to meet his Chinese counterpart Xi Jinping later this month.

 

Bessent made these remarks at a CNBC event as tensions continue to escalate between the world's two most powerful economies. He said that both Trump and Jinping have an excellent relationship, adding that the level of trust between the two leaders is the reason that things have not escalated further.

 

Strained US-China ties?

 

Ties between the US and China have once again strained after Trump announced plans to impose an additional 100 per cent tariff on Chinese goods, starting November 1, after a report suggested that China is considering expanding its export controls to nearly all of its products, including rare earth minerals, which are crucial for global technology supply chains. Slamming the move and calling it a "moral disgrace", Trump called out China's "extraordinarily aggressive" stance.

 

Soon after this, China announced export curbs on rare earth minerals and related technologies, citing national security. Beijing also accused Washington of practicing "double standards", adding that threatening high tariffs was not the right approach to engage with China.

 

Trump softens stance?

 

After China's retaliation, Trump reportedly softened his stance. On October 12 (local time), in a post on Truth Social, he claimed that Jinping just had 'a bad moment', adding that the US wishes to help China and not hurt its economy.

 

Earlier this week, a South China Morning Post report suggested that Beijing and Washington held "working-level talks" under a bilateral economic and trade consultation mechanism established earlier this year. The sentiment was echoed by Bessent at the CNBC event, when he said that he was "optimistic" about the ongoing talks with Beijing, noting that "we are now communicating at a very high level" and that "there have been many outreaches".  ALSO READ| US expects support from India, others amid China tensions: Treasury Secy 

US seeks support from allies

 

Earlier this week, speaking with Fox News Business, Bessent said that they are expecting support from allies India and other nations. He said that it was China versus the world, adding that they had added a bazooka to the supply chains and the industrial base of the entire free world.

 

On Wednesday (local time), he reiterated the same, adding that the US will speak with its allies, including India, to prepare a "fulsome group response" to China's export restrictions on rare earth minerals.

 

China's control over rare-earth minerals

 

According to a PTI report, China accounts for nearly 70 per cent of the world's rare earths mining, but at the same time controls about 90 per cent of their processing, which makes it virtually the sole supplier of the precious metals used in a host of modern equipment, including automobiles, electronics, wind energy, and defence. China's rare-earth metals are in high demand as the US, the European Union, and India are its top importers.