The United States Trade Representative, Jamieson Greer, stated that he and Treasury Secretary Scott Bessent traveled to Malaysia on Wednesday, October 22, to meet with Chinese officials to discuss Beijing’s “extremely aggressive” and “disproportionate” measures to restrict rare earth exports.
Bessent and Greer held a video call with Chinese Vice Premier He Lifeng last week and confirmed that the two sides would meet this week. The U.S. Trade Representative’s office hinted that this meeting could pave the way for a possible “Trump-Xi meeting.”
There are still serious disagreements regarding U.S.-China trade issues, and the relationship between the two countries has deteriorated rapidly recently due to the rare earth control problems. Whether President Trump will meet with Chinese leader Xi Jinping during the upcoming Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit in South Korea next week remains uncertain.
On Wednesday, the U.S. Trade Representative Greer stated on CNBC’s “Squawk Box” program that there is a window in President Trump’s schedule to meet with Xi Jinping, but whether the Trump-Xi meeting will take place needs to be jointly decided.
President Trump plans to travel to Kuala Lumpur, Malaysia this week to attend the opening of the Association of Southeast Asian Nations (ASEAN) Summit on Sunday, October 26, followed by the APEC Leaders’ Summit in Seoul, South Korea from October 31 to November 1.
Greer mentioned that Beijing’s recent measures contradict the commitment made by Chinese officials months ago to continue supplying rare earths for high-tech purposes. However, he also pointed out that there is still room for the U.S. and China to reshape their relationship.
“In theory, there is a good landing zone between the U.S. and China where we can trade in a more balanced way, engage in non-sensitive goods trade, and maintain a constructive relationship,” he said.
Apart from the rare earth issue, Greer mentioned that Trump and other U.S. officials would also discuss agricultural issues, including China’s halt on purchasing U.S. soybeans and sorghum. He emphasized that this action intentionally harms American farmers.
“Clearly, the President will bring…we will…raise this issue with them (Chinese officials),” he said.
After months of relative calm, trade tensions between the U.S. and China have escalated rapidly in recent weeks. China announced on October 9 restrictions on the vast majority of rare earth exports. In retaliation, Trump declared a 100% tariff on Chinese goods on October 10 and is considering restricting the export of key U.S. software to China, effective November 1.
Greer on Wednesday attributed the worsening of bilateral relations to China.
“The U.S. has been quite open to China, this (referring to the deterioration of relations) is actually caused by China’s exclusion of U.S. companies and its policies of overcapacity and surplus production,” he said. “We can’t continue like this, so we need an alternative path.”
Since Trump returned to the White House in January, U.S. and Chinese economic and trade teams have engaged in numerous negotiations. The possibility of reaching an agreement between the two countries still remains uncertain. President Trump has identified rare earths, fentanyl, and soybeans as top priorities in the U.S.-China trade relationship.
Trump stated at the White House on Monday, October 20 that China currently pays a 55% tariff to the U.S., saying, “If we don’t reach an agreement, they might have to pay 155% in tariffs starting from November 1.”
“I hope they (China) are doing well, I hope they are thriving, but we must prosper together,” the President said. “It’s a two-way street.”
In response to a question from ANI media on Tuesday, the President once again confirmed that China will face approximately 155% tariffs starting from November 1.
“I think it’s unsustainable for them (China),” said Trump. However, he emphasized that while he personally wants to maintain a friendly relationship with China, years of one-sided economic dealings have left the U.S. with no choice but to take a tough stance.
Trump pointed out that the trade agreements he previously reached with the European Union, Japan, and South Korea were all based on tariffs, as he considers tariffs a “national security” tool.
Trump reiterated on Tuesday that any agreement with China must be fair. However, he hinted that the meeting with Xi Jinping could still be canceled.