The US Department of the Treasury announced on Thursday (March 12) that Treasury Secretary Benson will meet with Chinese State Councilor and Vice Premier He Lifeng in Paris, France, on March 15-16. This meeting could potentially pave the way for President Trump’s planned visit to China at the end of this month and a meeting with the Chinese Communist Party leader Xi Jinping.
Benson stated in the announcement that thanks to mutual respect between the leaders of the United States and China, “US-China economic and trade dialogues are advancing.”
“Under President Trump’s guidance, our team will continue to achieve results, prioritizing the interests of American farmers, workers, and businesses.”
According to Bloomberg, the soybean issue is likely to be a topic of discussion at the Paris meeting between US and Chinese officials. Soybeans hold a central position in US-China trade relations. The report cited analyst Meng Zhangyu from the Commodity Exchange Ltd., who said, “The market widely believes that the meeting between the leaders of the two countries will undoubtedly stimulate more purchases.”
According to Reuters, a US official stated last month that Trump will visit China from March 31 to April 2. While Beijing has not confirmed this visit, its top diplomat indicated last Sunday (March 8) that the agenda for the meeting is under discussion.
US officials view this visit as one of four possible Trump-Xi meetings to be held this year. A person familiar with the preparations stated that the meeting between Benson and He Lifeng in Paris will focus on the potential outcomes of the Trump-Xi meeting.
Five individuals familiar with the preparations informed Reuters that the Trump-Xi meeting is unlikely to create space for even a limited reset in bilateral commercial and investment relations.
Bloomberg quoted analyst Susan Stroud from No Bull Ag as saying, “The market seems to be lowering expectations for major trade breakthroughs. The Middle East conflict has brought new uncertainties and shifted focus away from China.”
However, both Washington and Beijing hope to maintain the stable relationship between the US and China since the end of last year. Previously, Trump’s tariff policies and China’s restrictions on rare earth exports heightened tensions between the two countries.
Last month, the US Supreme Court ruled that the 10% fentanyl-related tariffs imposed by Trump under the emergency order against China and other countries are invalid. A US official stated that the Trump administration has informed Beijing about re-imposing the tariffs under another law.
But US Trade Representative Jamieson Greer told ABC last month that the purpose of this summit “is not to argue over trade issues.”
“It is about maintaining stability, ensuring China fulfills agreements, purchasing US agricultural products, Boeing aircraft, and other products, and ensuring they provide us with the necessary rare earth materials,” Greer said.
One potential outcome of this summit is that China may reach an agreement with Boeing to purchase around 500 narrow-body aircraft. Trump had threatened to impose export controls on Boeing parts last year, which greatly concerned China.
Two sources knowledgeable about the negotiation situation informed Reuters that Beijing is seeking concessions from the US in terms of purchases, including providing multi-year parts guarantees. Due to Boeing’s production pace and order backlog, these deliveries may not be completed until the 2030s.
An informant stated that White House officials may still choose to delay the Boeing deal to minimize the need to make concessions to Beijing while retaining some transactions to be announced at a future summit held in the US.