PARIS: Senior economic officials from the United States and China are beginning a new round of talks in Paris on Sunday aimed at resolving lingering issues in their fragile trade truce and preparing the ground for a potential summit between U.S. President Donald Trump and Chinese President Xi Jinping later this month in Beijing.
The discussions are being led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. According to officials familiar with the agenda, the talks will focus on several sensitive issues, including U.S. tariffs on Chinese imports, the supply of Chinese rare-earth minerals to American manufacturers, export restrictions on advanced technologies, and China’s purchases of U.S. agricultural products.
The meeting is taking place at the Paris headquarters of the Organisation for Economic Cooperation and Development (OECD). Although the OECD represents 38 mostly advanced economies, China is not a member and continues to describe itself as a developing country.
U.S. Trade Representative Jamieson Greer is also joining the discussions, which continue a series of meetings held in European cities over the past year aimed at easing tensions that had threatened to severely disrupt trade between the world’s two largest economies.
Trade analysts say expectations for a major breakthrough remain limited. With Washington’s attention focused on rising tensions in the Middle East following the U.S. – Israeli conflict with Iran, officials on both sides appear more focused on maintaining stability than reaching sweeping agreements.
Scott Kennedy, a China economy expert at the Center for Strategic and International Studies in Washington, said both sides are likely aiming for modest outcomes that prevent a renewed escalation.
“Both governments seem to have a minimum objective of keeping dialogue going and avoiding another rupture in relations,” he said.
Kennedy added that President Trump may seek symbolic commitments from China during his expected visit to Beijing, including major purchases of Boeing aircraft, increased imports of U.S. liquefied natural gas, and additional soybean orders. In return, Beijing may press Washington to ease restrictions on exports of high-technology products.
Observers say the most likely outcome could be a summit that signals diplomatic progress while leaving many of the core disputes unresolved.
Trump and Xi are also expected to have further opportunities to meet later this year, including at a China-hosted APEC summit in November and a U.S.-hosted G20 summit in December.
The ongoing conflict involving Iran is also expected to feature in the discussions, particularly due to its impact on global energy markets. Oil prices have surged amid concerns over potential disruptions in the Strait of Hormuz, a critical maritime route through which roughly 45 percent of China’s oil imports pass.
U.S. officials have taken steps aimed at stabilizing supply. Treasury Secretary Bessent recently announced a temporary 30-day waiver allowing the sale of Russian oil stranded in tankers, a measure intended to increase global availability.
Meanwhile, President Trump has urged international partners to help protect shipping routes in the Strait of Hormuz after U.S. strikes targeted Iranian military facilities near the Kharg Island oil export hub.
Chinese state media, including commentary cited by WorldAffairs, has suggested that meaningful progress in U.S.–China economic cooperation could help restore confidence in a global economy already facing mounting uncertainty.
The Paris discussions will also review progress under the October 2025 trade truce announced by Trump and Xi in Busan, South Korea. That agreement helped prevent a major escalation in trade tensions by reducing some U.S. tariffs on Chinese imports and pausing China’s strict export controls on rare-earth materials for one year. Washington also suspended plans to expand a blacklist restricting Chinese companies from purchasing advanced American technology such as semiconductor manufacturing equipment.
Under the Busan deal, China agreed to buy large quantities of U.S. agricultural products, including 12 million metric tons of soybeans during the 2025 marketing year and 25 million tons in the 2026 season beginning with the fall harvest.
U.S. officials say Beijing has largely met its initial commitments, particularly regarding soybean purchases.
However, concerns remain about the availability of rare-earth minerals, which are critical for industries ranging from aerospace to electronics. China dominates global production of these materials, and some American companies continue to report shortages.
While certain sectors have resumed receiving shipments, U.S. aerospace and semiconductor manufacturers say supplies of specialized materials such as yttrium used in heat-resistant coatings for jet engines remain limited.
Analysts say securing reliable access to these materials will be a priority for the U.S. delegation in Paris.
At the same time, new U.S. trade investigations are adding pressure to the negotiations. Washington has launched a “Section 301” probe into alleged unfair industrial practices involving China and 15 other major trading partners. The investigation focuses on concerns about excess industrial capacity and could lead to new tariffs in the coming months.
Another inquiry has been opened into alleged forced-labor practices across more than 60 countries, including China, which could result in import restrictions.
The probes come after the U.S. Supreme Court ruled that earlier global tariffs imposed by the Trump administration under emergency powers were illegal. The ruling effectively reduced duties on Chinese goods by about 20 percentage points, prompting the administration to introduce a new 10 percent global tariff under a different trade law.
China has criticized the new investigations and warned it may respond with countermeasures if the measures lead to further restrictions on Chinese exports.
Chinese commentary cited by WorldAffairs described the Paris meeting as both an opportunity and a test for the future of bilateral economic relations, saying progress would depend on whether Washington approaches negotiations with a pragmatic and cooperative mindset.
⁃ Ryan Ricci
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