Top economic officials from United States and China concluded the first day of talks in Paris on Sunday, aiming to resolve trade truce issues and pave the way for US President Donald Trump’s visit to meet Chinese President Xi Jinping later this month.
The discussions, led by Scott Bessent and He Lifeng, focused on shifting US tariffs, the export of Chinese-produced rare earth minerals and magnets to US manufacturers, American high-tech export controls, and China’s purchase of US agricultural goods.
The delegates met for over six hours at the Organisation for Economic Co-operation and Development (OECD) headquarters in Paris, with talks scheduled to resume Monday. While China is not an OECD member, it participated as a key partner in these negotiations. Both sides remained tight-lipped, with Chinese officials declining media comments.
US Trade Representative Jamieson Greer emphasized the goal of maintaining stability in US-China relations, noting the importance of securing rare earth supplies for US industries and ensuring Chinese purchases of American goods.
The Paris meeting follows a series of discussions across Europe last year aimed at easing trade tensions that threatened to destabilize the world’s two largest economies. Analysts say the focus is largely on maintaining the trade truce, with significant breakthroughs unlikely in the short term due to limited preparation and US attention on the ongoing US-Israel conflict with Iran.
Trump reportedly hopes to secure Chinese commitments to purchase Boeing aircraft and US liquefied natural gas, along with soybeans, though this may require concessions on US export controls. Further high-level meetings could occur later this year, including at the China-hosted APEC summit in November and the US-hosted G20 summit in December.
The Iran war and its impact on oil prices, particularly the closure of the Strait of Hormuz—which supplies 45% of China’s oil—were expected to feature in discussions. Bessent recently announced a 30-day waiver of sanctions on Russian oil to alleviate supply constraints, while Trump urged international cooperation to secure shipping routes following strikes on Iran’s Kharg Island oil hub.
The talks also reviewed progress under the October 2025 Busan trade truce, which reduced US tariffs on Chinese goods, paused Chinese rare earth export controls, and suspended the expansion of a US blacklist on Chinese high-tech imports. China committed to buying 12 million metric tons of US soybeans in 2025 and 25 million tons in 2026, targets it is reported to have met.
However, US aerospace and semiconductor firms continue to face shortages of critical rare earth materials, including yttrium, essential for jet engine coatings. US priorities in Paris are expected to center on agricultural purchases and improved access to rare earths.
Adding complexity to negotiations are new US trade probes, including a Section 301 investigation into unfair practices by China and 15 other trading partners, and a forced labor probe covering 60 countries. These investigations could trigger additional tariffs and were criticized by Chinese state media as unilateral actions that hinder progress.
Xinhua, China’s state-run news agency, called the talks both an “opportunity and a test,” urging Washington to adopt a rational and pragmatic approach to ensure stable US-China economic relations.
