US and China Economic Chiefs Meet in Paris to Prepare for Trump-Xi Summit

High-Level Talks Underway

PARIS — Top economic officials from the United States and China concluded the first day of a two-day meeting in Paris on Sunday to address ongoing trade issues and pave the way for President Donald Trump’s upcoming trip to Beijing to meet President Xi Jinping at the end of March.

The discussions, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, focused on US tariffs, Chinese exports of rare earth minerals and magnets, American high-tech export controls, and China’s purchases of US agricultural products.

Details and Duration of Talks

The officials met for over six hours at the Organisation for Economic Co-operation and Development (OECD) headquarters. Talks are set to continue Monday morning. Both sides avoided public statements after the first day, and Chinese officials left without speaking to the press.

US Trade Representative Jamieson Greer emphasized the need for stability in US-China relations, noting the importance of rare earth supplies and agricultural trade for US industries.

Context and Prior Negotiations

The Paris talks follow a series of meetings in Europe last year intended to ease trade tensions that threatened a near-collapse of commerce between the world’s two largest economies. Analysts noted that the ongoing US-Israeli conflict in Iran may limit prospects for a major breakthrough at the summit, though maintaining engagement remains a minimum goal for both sides.

Trump may seek Chinese commitments to purchase Boeing aircraft, liquefied natural gas, and soybeans, but concessions on export controls could be required.

Impact of the Iran War

The recent US-Israeli operations against Iran, including strikes on Kharg Island and the closure of the Strait of Hormuz, are expected to feature in discussions. China sources 45% of its oil through the strait, and the conflict has spiked global oil prices.

Treasury Secretary Bessent recently announced a 30-day waiver on Russian oil sanctions to ease supply pressures, a move likely relevant to the Paris talks.

Trade Truce Review

The Paris meeting also reviewed commitments from the October 2025 Busan trade truce, which included temporary US tariff reductions, a pause on China’s export controls on rare earths, and agreements on US agricultural exports. China has largely met its soybean purchase targets, but rare earth access remains limited for US aerospace and semiconductor industries.

New Trade Investigations

US officials also raised concerns about ongoing “Section 301” investigations targeting China and 15 other major trading partners over excess industrial capacity and forced labor practices. These probes could lead to new tariffs, and China has warned it may take countermeasures.

Outlook

Xinhua, China’s state-run news agency, called the talks both an opportunity and a test. The agency stressed that progress depends on the US side approaching negotiations with a rational and pragmatic mindset to maintain stable economic relations.
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