US-China trade negotiation officials are set to begin a two-day meeting in Paris on Sunday (March 15) to discuss lingering issues between the world’s two largest economies following the trade truce agreement reached in 2025.
Both sides have released signals of stability in US-China relations ahead of the talks, yet with accompanying signs of sharp disagreements. The meeting is seen as paving the way for US President Trump’s upcoming visit to China at the end of the month for a summit with Chinese Communist Party leader Xi Jinping.
The US trade negotiation team includes Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, while the Chinese representative is Vice Premier of the State Council He Lifeng.
President Trump said on Friday regarding China, “We’ve always maintained a very good relationship,” and “Our economic relationship with China is progressing smoothly.”
Greer, in an interview with CNBC on Friday, said, “We want to ensure the stability of US-China relations. We want to ensure that we can continue to access the rare earth resources needed by our manufacturing sector, ensure that they continue to purchase products they should from the US, and ensure that the leaders of the two countries have the opportunity to meet, to ensure that US-China relations are developing in the direction we hope.”
“We will continue to trade with China, but the trade relationship is moving towards a more balanced direction,” the trade representative added, noting that the US trade deficit with China in goods decreased by 30% in 2025, which is a significant change.
The National People’s Congress of China also expressed its desire to maintain stable relations with the United States.
NPC spokesperson Lou Qinquan stated at a press conference on the 4th that summit diplomacy plays an irreplaceable strategic guiding role in Sino-US relations.
“China and the US benefit from cooperation and suffer from confrontation,” he said. “China is willing to strengthen communication at all levels and channels with the US, to open up broader space for cooperation.”
However, he also hinted that the US “cannot act arbitrarily in the world.”
The US Trade Representative’s Office announced on Wednesday (11th) that it will initiate a 301 investigation into China and 15 other trading partners for structural overcapacity and production issues in manufacturing under the 1974 Trade Act to determine if these countries’ overcapacity “burdens or restricts US commerce,” as the US seeks to boost its domestic manufacturing sector.
This investigation aims to grant the Trump administration new tariff imposition powers. This is a new trade remedy tool adopted by the White House after the Supreme Court rejected Trump’s “equity” tariffs under the International Emergency Economic Powers Act. The Trump administration suggested that it will return to the current tariff levels five months later.
The US Trade Representative’s Office stated that in 2024, China’s trade surplus with the US reached $361 billion, the largest among all US trading partners, and added that the actual number could be higher due to abnormal data from Beijing.
On Friday, Beijing voiced opposition to the newly announced 301 investigation by the US, calling it “unilateral restrictive measures.”
A spokesperson for the Chinese Ministry of Commerce said that the US has no right to unilaterally decide whether its trading partners have overcapacity and vowed that China will reserve the right to take all necessary measures to protect its legitimate interests.
Foreign leaders and international institutions such as the International Monetary Fund have repeatedly urged Beijing to address its export dependency issue, but the Chinese government has never admitted to having overcapacity issues.
The National People’s Congress of China approved a new five-year economic development plan this week, which aims to enhance the independent research and development capabilities of high-tech industries and to further expand trade exports.