As Trump and Xi's Meeting in Shenzhen Approaches, US and China Engage in Trade Tensions

In the early morning of October 6, 2024, Trump delivered his victory speech. (Photo by Chip Somodevilla/Getty Images)

[People News] With only one week remaining until the meeting between Trump and Xi Jinping in Shenzhen, Trump has stated that he will meet with both Putin and Xi at the Asia-Pacific Economic Cooperation summit, where he may discuss trade issues with Xi.

On November 6, the United States called on the Chinese Communist Party to fulfil the commitments made last year to alleviate the trade conflict between the two nations, using notably sharp language. Previously, the U.S. had expressed disappointment over Beijing's failure to uphold its commitments regarding rare earth and other mineral exports.

In a recent statement, the U.S. Treasury Department noted that Treasury Secretary Scott Bessent requested during a call with He Lifeng that the Chinese Communist Party "must fully and immediately fulfil the terms of the trade agreement reached at the meeting in Busan, South Korea, in October 2025 (including commitments on rare earths and agricultural product purchases)," and that the U.S. would "closely assess Beijing's compliance with the agreement."

Bessent later took to social media to express his concerns regarding the recent actions of the Chinese Communist Party and to express hope for "concrete results." However, the statement did not specify which actions had led to the dispute.

In October of last year, during the Asia-Pacific Economic Cooperation summit in Busan, South Korea, U.S. President Donald Trump met with Xi Jinping. The Chinese Communist Party committed to purchasing 25 million tons of American soybeans from that year through 2028 and increasing its procurement of U.S. agricultural products by $17 billion. They also agreed to suspend new export controls on rare earth elements and to allow the issuance of rare earth export licenses. The U.S. tariffs on goods from mainland China were set at around 20%.

This trade truce was initially scheduled to expire on November 10. However, just one day before the deadline, on November 9, several Chinese government departments, including the Ministry of Commerce and the Ministry of Transport, unexpectedly announced a notice to 'continue suspending several trade measures against the United States' for an additional two months. This effectively extended the trade truce by two months. Earlier, during Xi Jinping's visit to the White House in September, both parties had agreed to extend the agreement's validity until January 10, 2027.

According to a report by Reuters, Bessent and other U.S. officials have repeatedly noted that following the 'Busan Agreement,' American companies faced challenges in securing adequate supplies of rare earths and other critical minerals from mainland China. AFP also cited experts who indicated that the primary concern for the U.S. was the shipping speed of Chinese rare earth magnets. U.S. officials claimed that the North had only fulfilled two-thirds of the commitments outlined in the Busan rare earth agreement.

Reports indicate that U.S. Trade Representative Robert Lighthizer held a video conference with He Lifeng to discuss trade and economic relations with the Chinese Communist Party. Lighthizer stressed that the Trump administration will continue to monitor the Chinese Communist Party's adherence to previous commitments, while also ensuring lasting benefits for American farmers, ranchers, manufacturers, and workers.

According to a report from the party's media outlet, Xinhua News Agency, He Lifeng expressed 'serious concerns' during the call about the recent trade restrictions imposed by the United States. However, the statement did not specify which measures He Lifeng was referring to.

Trump and Xi Jinping are set to meet two more times this year, including at the APEC summit in Shenzhen in November and the G20 summit in Miami in December.

(This was first published by the People News) △