- U.S. Treasury Secretary Scott Bessent confirmed ongoing communication with China regarding trade issues.
- President Donald Trump is still expected to meet with Chinese President Xi Jinping in South Korea at the APEC summit.
- Recent tensions arose after President Trump threatened tariff increases in response to China’s export controls on rare earth elements.
- Bessent stated that the U.S. is seeking international support and is open to discussions with China to address export restrictions.
- Stock markets reacted positively, with major U.S. indices moving higher in pre-market trading.
Treasury Secretary Scott Bessent stated on Monday that there has been significant communication between the United States and China over the past weekend. The discussions come as President Donald Trump has indicated plans to increase tariffs on Chinese products if China maintains its export controls on rare earth elements. The leaders of both countries are expected to meet in South Korea during the upcoming Asia-Pacific Economic Cooperation (APEC) summit, scheduled from October 31 to November 1.
In an interview on Fox Business, Bessent said the tariff threats from President Trump would not go into effect until November 1. He confirmed, “He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on.” He also criticized China’s export controls, stating that China had pointed a “bazooka” at the global market with its restrictions on rare earth materials, which are critical components for electronics and advanced manufacturing.
Bessent added, “We will not let these export restrictions and monitoring go on. And I believe that China is open to discussion on this.” He expressed optimism about resolving tensions and mentioned that the U.S. expects support from European countries, India, and other Asian nations. According to Bessent, “China is a command and control economy. They are neither going to command nor control us.”
On Friday, President Trump had expressed doubts about the necessity of meeting President Xi after China’s export control announcement. In a post on Truth Social, Trump said, “One of the policies that we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America.”
Meanwhile, U.S. equities rose in response to these developments during Monday’s pre-market session. The SPDR S&P 500 ETF (SPY) was up 1.22%, the Invesco QQQ Trust ETF (QQQ) rose 1.74%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) increased by 0.85%. The iShares 7-10 Year Treasury Bond ETF (IEF) saw a modest gain of 0.05%.
Both Trump and Xi are still scheduled for an in-person meeting at the APEC event, with further updates expected as negotiations continue.
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