Washington: US Treasury Secretary Scott Bessent on Wednesday voiced optimism about the progress of trade discussions with China, even as tensions between the two nations escalated over Beijing’s recent restrictions on rare earth exports.

Bessent hopeful despite escalating trade friction

Speaking at a CNBC-hosted event, Bessent confirmed that US President Donald Trump still intended to meet Chinese President Xi Jinping “in the near future.” The meeting is expected to take place during the upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month.

Despite mounting strain in bilateral relations, Bessent said, “President Trump is a ‘go’ on that,” adding that both leaders continue to share “an excellent relationship.” He expressed confidence that communication channels between Washington and Beijing had improved, remarking, “We are now communicating at a very high level, and there have been many outreaches.”

According to him, both sides are also conducting working-level discussions on the sidelines of the International Monetary Fund (IMF) and World Bank annual meetings in Washington.

Trump announces sweeping new tariffs on China

Bessent’s remarks came against the backdrop of renewed trade tensions. Last week, Trump had threatened to cancel his meeting with Xi after China announced fresh export controls on rare earth materials and technologies essential to US industries.

The move, viewed widely as a countermeasure, prompted the White House to adopt a tougher trade stance. In response, Trump unveiled a sweeping tariff package, imposing an additional 100 per cent duty on Chinese imports—raising the total tariff burden on Chinese goods to 130 per cent.

In a post on Truth Social, Trump wrote, “In response to China’s export control on rare earths and related items, the United States will impose a tariff of 100 per cent on China, over and above any tariff that they are currently paying.”

He also announced new export controls on all “critical software” starting November 1, accusing Beijing of taking an “unprecedented and hostile” stance in trade relations.

China responds, warns against escalation

In a sharp rebuttal, a spokesperson from China’s Ministry of Commerce said, “Willful threats of high tariffs are not the right way to get along with China.” The ministry reiterated that while Beijing does not seek a trade war, it is “not afraid of it either.”

It urged Washington to “correct its wrong practices” and manage differences through dialogue. “Properly manage differences through dialogues and on the basis of mutual respect and equal-footed consultation, so as to ensure the stable, sound and sustainable development of the China-US economic and trade relationship,” the statement said.

Defending its recent export control decision, China described the October 9 measures as “normal actions taken by the Chinese government in accordance with laws and regulations to refine its export control system.”

Beijing accuses Washington of double standards

According to Global Times, China asserted that it “firmly safeguards national and international security” and applies export controls “in a prudential and moderate manner.” The ministry further accused Washington of hypocrisy, stating that “the US remarks reflect typical double standards.”

It said the United States had “overstretched the concept of national security, abused export control, and imposed unilateral long-arm jurisdiction measures” on thousands of Chinese entities.

Since the China-US trade talks in Madrid in September, Beijing noted that Washington had implemented “a string of new restrictive measures” against Chinese industries. “In just 20 days, the US has added multiple Chinese firms to the Entity List, expanded control over affiliates, and persisted with Section 301 measures on China’s maritime and shipbuilding sectors,” it said.

Concluding its statement, Beijing said these actions “have severely harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks,” reiterating that it “is resolutely opposed to them.”

Outlook

While both governments have hardened their positions in recent weeks, Bessent’s comments suggest that backchannel diplomacy continues. The proposed Trump–Xi meeting at the APEC summit could prove a critical test of whether the world’s two largest economies can de-escalate tensions and return to a path of negotiation