U.S.-China trade talks have reportedly stalled, prompting calls for direct communication between the two nations’ leaders. Treasury Secretary Scott Bessent stated that the discussions require input from President Donald Trump and China’s President Xi Jinping to move forward effectively. He emphasized the complexity of the negotiations and the need for both leaders to engage directly to reach a resolution.
Bessent noted that while there was a breakthrough agreement reached in Switzerland on May 12, which included a temporary rollback of tariffs, the U.S. has continued to impose technology restrictions on China. This has led to tensions, as China has not significantly eased its restrictions on rare earth exports, contrary to U.S. expectations. Bessent expressed confidence that the Chinese would return to the negotiating table once Trump articulates his preferences clearly.
The last conversation between Trump and Xi took place in January, just before Trump began his second term. Analysts believe that China will only agree to a new call if it can be assured that there will be no unexpected developments from the U.S. during the discussion. Meanwhile, the Chinese Ministry of Commerce has maintained communication with the U.S. since the agreement in Switzerland, urging the U.S. to correct its practices regarding chip export controls.
As the situation develops, both countries face significant economic implications tied to the outcome of these stalled negotiations.
