US Treasury Secretary praises Paris talks with China as 'very positive' ahead of Trump-Xi summit

US Treasury Secretary Scott Bessent called the recent Paris meetings with Chinese officials very positive, highlighting progress on trade, energy, and agriculture ahead of the upcoming Trump-Xi summit in Beijing, signaling potential improvements in bilateral economic relations.

A delegation from the United States, headed by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, completed a two-day series of meetings with Chinese officials in Paris on Monday. Secretary Bessent labeled the discussions as "very good," providing the first formal American summary of the talks. The meetings involved high-level Chinese officials, including Vice Premier He Lifeng and chief trade negotiator Li Chenggang. These discussions are part of ongoing efforts to stabilize relations between the United States and China following the imposition of trade tariffs last year.

Topics Covered During the Discussions

The US delegation concentrated on several critical trade issues. Key areas included the expansion of Chinese imports of Boeing aircraft, as well as American energy resources such as coal, oil, and natural gas. The talks also addressed the need to increase Chinese purchases of US agricultural products, including poultry, beef, and non-soybean row crops. A significant element of the negotiations was China’s commitment to continue buying 25 million metric tonnes of American soybeans annually over the next three years.

Global Context of the Talks

The Paris meetings are part of a broader series of discussions held in cities such as Geneva, London, Stockholm, Madrid, and Kuala Lumpur, aimed at stabilizing bilateral trade relations. The timing of the talks coincides with preparations for President Donald Trump’s upcoming visit to Beijing at the end of March. Additionally, the ongoing Iran War, which has affected global oil markets, continues to influence the context and urgency of trade negotiations.

Progress on Trade and Investment Mechanisms

During the Paris meetings, both sides examined the establishment of formal mechanisms to manage trade and investment in non-sensitive sectors. Proposals included creating a US-China Board of Trade and a Board of Investment. Discussions also addressed critical minerals, with the United States advocating for expanded access to yttrium, a rare-earth element necessary for jet engine turbines. Both countries recognized the importance of easing restrictions in this sector to facilitate trade.

Implications for the Trump-Xi Summit

Secretary Bessent noted that major decisions or agreements resulting from the discussions would ultimately be finalized by President Trump and Chinese President Xi Jinping during the Beijing summit, scheduled for March 31 to April 2. This visit marks the first trip by a sitting US president to China in nearly ten years, following President Trump’s 2017 visit during his first term. The summit is expected to serve as the primary forum for resolving outstanding trade issues discussed in Paris.

Impact of the Strait of Hormuz on Trade Negotiations

The ongoing conflict in Iran and its effect on the Strait of Hormuz, a crucial channel for global oil transportation, were also considered during the talks. The Strait is particularly important for China’s crude oil imports. President Trump indicated that the Beijing summit could be delayed if China does not support US naval efforts to secure the waterway. Secretary Bessent clarified that any potential rescheduling would be due to logistical reasons rather than disagreements over the Strait itself.

Potential Developments in US-China Relations

The Paris discussions have created an opportunity for possible improvements in the economic relationship between the United States and China. The central question is whether the positive tone described by Secretary Bessent will lead to concrete agreements in sectors such as aviation, energy, and agriculture. With fewer than two weeks remaining before the Beijing summit, attention is now focused on translating these preliminary discussions into actionable commitments.

Participation of Senator Marco Rubio

US Secretary of State Marco Rubio is expected to join President Trump at the Beijing summit, despite previous tensions with China. In 2020, China imposed sanctions on Rubio, including travel restrictions, due to his positions on Hong Kong and Xinjiang. However, the Chinese Foreign Ministry has indicated that these measures were targeted at his actions as a senator and would not prevent his participation in the upcoming summit. Rubio’s presence underscores the balancing act the US administration faces between pursuing economic engagement and addressing security concerns.

Looking Forward

Following the conclusion of the Paris talks, the focus shifts to whether the optimistic environment described by Secretary Bessent will result in tangible progress on trade issues between the United States and China. Key subjects such as aircraft sales, energy exports, and agricultural trade remain central to the negotiations. The outcomes of the Beijing summit are expected to significantly influence the trajectory of US-China relations in the years ahead.

Sources:

• Reuters
• Bloomberg
• CNBC
• US Treasury chief calls Paris talks with China 'very good' before Trump-Xi summit

Author: Grace Ellison
Grace Ellison is a journalist focusing on environmental issues and sustainability. She has experience publishing international reports and participating in documentary projects.