U.S.-China Trade Talks ‘Stalled’ — Trump and Xi Urged to Intervene

U.S.-China trade talks have hit a temporary stalemate and now require direct engagement between President Donald Trump and Chinese President Xi Jinping, according to U.S. Treasury Secretary Scott Bessent.

Speaking to Fox News in Beijing on Thursday, Bessent said, “I believe that we will be having more talks with them in the next few weeks,” adding that a phone call between the two leaders might happen “at some point.”

Breakthrough in Switzerland, But Uncertainties Remain

The statement follows a major breakthrough on May 12 in Switzerland, where the two global economic giants agreed to pause recent tariff hikes for 90 days, allowing room for further negotiations until mid-August. Despite that progress, underlying tensions remain high.

Technology Restrictions and Rare Earths: Core Issues

Since the Switzerland agreement, the U.S. has proceeded with new technology restrictions targeting Chinese companies, which has sparked backlash from Beijing. In return, China has yet to ease its export controls on rare earth materials, contrary to U.S. expectations.

During a regular press briefing on Thursday, Chinese Ministry of Commerce spokesperson He Yongqian reiterated that China has maintained open communication since the Geneva talks. However, she stressed that China “urges the U.S. to immediately correct its wrong practices” and honor prior consensus.

When asked whether China plans to suspend its rare earth export restrictions, He did not provide a direct answer. She explained that such measures reflect international norms and China’s broader commitment to “global peace and regional stability.”

High-Level Dialogue Needed

“The complexity and significance of the trade talks require both leaders to weigh in personally,” Bessent emphasized. “They share a strong relationship, and I’m confident the Chinese will re-engage once President Trump’s preferences are made clear.”

Trump and Xi last spoke in January, shortly before Trump began his second term. Although Trump has recently expressed interest in reconnecting with Xi, analysts suggest China may only agree to a call if Washington guarantees no sudden moves during the conversation.

Student Visa Tensions Add to Strain

Compounding the tension, the U.S. recently announced it would start revoking visas for certain Chinese students, prompting strong condemnation from Beijing.

“This decision is completely unjustified,” said Mao Ning, spokesperson for China’s Foreign Ministry. “The U.S. is using ideology and national security as an excuse.”

Conclusion

While the 90-day tariff freeze marked progress in U.S.-China trade talks, deep divisions persist, especially around technology policy and rare earth exports. Both sides acknowledge the need for continued dialogue, but experts believe only a direct Trump-Xi conversation can break the current impasse and bring the talks back on track.

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Source: CNBC