The United States and China held fresh talks on Friday (Nov 07) to address tensions over trade and economic restrictions ahead of a possible meeting between Presidents Donald Trump and Xi Jinping later this month.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer spoke with Chinese Vice Premier He Lifeng. Both sides described the discussions as "frank" and discussed trade commitments and recent restrictions.
Washington stressed "the importance of China fully and immediately implementing its commitments" and raised concerns about Beijing's recent actions, according to the US Treasury Department.
China, meanwhile, said it had expressed "serious concerns over recent economic and trade restrictive measures imposed by the United States".
What is behind the trade tensions?
The discussions focused on a trade agreement reached by Trump and Xi in October 2025 in Busan, South Korea.
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Under the deal, China agreed to purchase US soybeans through 2028, suspend new export controls on rare earths and issue general licences for exports of these materials. The agreement helped ease tensions after both countries raised tariffs on each other's goods earlier in 2025.
However, Washington wants Beijing to fulfil its commitments. Bessent said further progress would depend on "concrete results" and that the US would closely monitor China's implementation of the agreement.
Both sides agreed to "properly manage differences" and work towards a "stable" trade relationship, China's commerce ministry said.
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US sanctions on Chinese companies add to dispute
Trade tensions have also increased after Washington imposed sanctions on two Chinese companies over their alleged links to Cuba's military.
The US State Department accused China National Electronic Import and Export Company (CEIEC) and Beijing H&C Technologies of working with Cuban arms procurement company Sociedad Mercantil Duna to supply military-related goods in 2026.
Beijing opposed the move, accusing Washington of targeting Chinese companies over their dealings with a third country.
"We have noted the relevant situation. The US has imposed unilateral sanctions on Chinese companies on the grounds of their involvement with a third party, in violation of international law and basic norms of international relations. China firmly opposes such a move," a Chinese commerce ministry spokesperson said.
Rare earth exports also remain another major point of disagreement. These materials are essential for making smartphones, cars and military equipment, and China's export restrictions have raised concerns in Washington.
Trump-Xi meeting expected at APEC summit
The talks come ahead of the APEC summit, which China will host in Shenzhen on November 18 and 19. Trump and Xi are expected to meet during the gathering.
A possible meeting involving Russian President Vladimir Putin is also being discussed. Beijing said it was in contact with Washington and Moscow about the proposal.
During Xi's September visit to the White House, the trade agreement, which initially covered one year, was extended until January 10, 2027.
