United States officials consider Trump-Xi meeting could calm China trade tensions

U.S. senior officials expressed on Sunday, June 1, that a conversation between Presidents Donald Trump and Xi Jinping could ease the current trade war between China and the United States. In an interview with CBS, U.S. Treasury Secretary Scott Bessent stated, “China is holding back essential products for the supply chains of India and Europe, and that is not what a reliable trading partner does.”

He also expressed optimism about an upcoming meeting between the two governments “very soon.” “I trust that when President Trump and Communist Party President Xi Jinping communicate, this can be resolved,” he added. It is worth noting that Trump reignited trade tensions by accusing Beijing of violating the commitments made in the deal they negotiated on May 12 in Geneva.

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Why are there trade tensions between China and the U.S.?

Trade tensions stem from practices Washington considers unfair, such as state subsidies, trade barriers, and intellectual property theft. Since 2018, under the Trump administration, tariffs were imposed on hundreds of Chinese products worth over $360 billion, to which Beijing responded with similar measures.

These actions sparked a trade war that affected international trade and foreign direct investment. Additionally, there is fierce competition in strategic sectors like technology and semiconductors. The U.S. restricted Chinese companies’ access to certain products. The dispute is further intensified by geopolitical tensions over Taiwan and control of the South China Sea.

Donald Trump: "China has totally violated its agreement with us"

In comments to CNBC, U.S. Trade Representative Jamieson Greer accused China of “slowing down and choking” access to critical minerals. Meanwhile, Trump posted on his Truth Social platform that “China, perhaps unsurprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” writing in all caps without providing further details.

According to the Wall Street Journal, the issue arose because Beijing delayed approving export licenses for rare earths and other materials needed for car and chip manufacturing. Trump’s advisor Stephen Miller stated that since China is failing to meet its obligations, “the United States has all kinds of tools at its disposal to ensure compliance in the future.”

Chinese Government: “There are no winners in a tariff or trade war”

Chinese Foreign Ministry spokesperson Mao Ning stated, “China has repeatedly expressed its position on the tariff issue. There are no winners in a tariff or trade war.” This statement followed a U.S. International Trade Court order to suspend the 30% tariffs imposed on China.

This also concerns the 25% tariffs on certain products from Mexico and Canada, and the global 10% tariffs. The White House announced it will appeal the decision, arguing that the tariffs are necessary due to trade deficits that, according to Deputy White House Spokesperson Kush Desai, caused “a national emergency that has devastated American communities.”