US and China Talk Trade, Rare Earths Before Xi's Big Visit

The United States and China held an important phone call on July 30 to get ready for a major meeting between the two countries. US Treasury Secretary Scott Bessent spoke with Chinese Vice-Premier He Lifeng to help prepare for Chinese President Xi Jinping's planned visit to the US in September. The two officials talked about trade deals, rare earth minerals, and several other topics that have caused tension between the world's two largest economies.

Bessent shared details about the call on social media. He said he stressed that the US expects China to keep its promises about rare earth minerals and agricultural products like food grown on American farms. Rare earths are a group of special minerals used to make things like smartphones, electric cars, and military equipment. Getting enough of these minerals is very important to the US.

Bessent also talked about setting up special boards focused on trade and investment. These boards are meant to help the two countries make real progress toward a fairer economic relationship. US Trade Representative Jamieson Greer also joined the call to take part in the discussion.

China's state news agency, Xinhua, reported that Vice-Premier He expressed 'serious concern' about some recent US actions toward China. Both sides agreed to keep talking, build trust, and clear up misunderstandings. This kind of regular communication has become a key part of how the two countries manage their complicated relationship.

Bessent and He have been meeting regularly for about a year and a half. Their talks have covered tough topics such as tariffs, rare earths, and even the popular social media app TikTok. This ongoing effort helped create a shaky but important truce between the two nations, which made it possible for US President Donald Trump to visit Beijing in May.

Right now, the US and China are in the middle of a trade truce. This truce paused some tariffs, which are extra taxes placed on goods coming from other countries, and eased some other trade restrictions. However, new problems have started to appear in the relationship, putting that truce under pressure.

Some of those new problems include fresh import taxes that Trump wants to add, disagreements over access to rare earth minerals, and worries about China possibly sending weapons to Iran during the ongoing US-Iran conflict. There are also growing concerns about new Chinese artificial intelligence, or AI, computer programs. These Chinese AI models are becoming powerful enough to compete with top programs made by US companies, which has made officials in Washington nervous.

Bessent recently suggested that the US might use sanctions — penalties that block trade or freeze money — against Chinese AI companies if they are found to be stealing ideas or technology from American firms. The US has also put new limits on certain robots and electronic devices made in other countries. Although the rules did not name China directly, most of those products come from China, so the restrictions work almost like a ban on Chinese goods.