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The United States has warned China that it expects Beijing to honour its commitments on rare earths and US agricultural products, adding a fresh point of tension as Washington and Beijing prepare for a possible September meeting between US President Donald Trump and Chinese President Xi Jinping.
US Treasury Secretary Scott Bessent said he and US Trade Representative Jamieson Greer spoke with Chinese Vice Premier He Lifeng on Friday ahead of the potential Trump-Xi meeting.
“I emphasized that we expect Beijing to fully meet its commitments on rare earths and US agricultural products,” Bessent said in a post on X.
The talks come as the two sides try to preserve a fragile trade truce while disputes over export controls, tariffs and access to critical minerals continue to strain relations between the world’s two largest economies.
Rare earths emerge as key flashpoint
Rare earths have become one of Beijing’s most powerful economic levers in its trade relationship with Washington. China dominates much of the global supply chain for rare earth minerals and their processing, making its export policies closely watched by US manufacturers and other industries.
The Trump administration has accused China of only partly meeting its commitments to supply rare earth minerals under the trade truce reached in November 2025.
Bessent’s latest remarks suggest Washington is seeking clearer evidence that Beijing is delivering on those commitments as the two countries move towards another potential leaders’ meeting.
According to a Reuters report, Washington views China’s recent commercial measures and export restrictions as “problematic”.
“The US has raised these concerns repeatedly within their trade and economic channel and provided China time to reverse course, but China has continued to escalate and cause chaos,” the report said, citing a source.
“China’s continued escalations will have consequences,” the report added.
China raises concerns over US restrictions
China, meanwhile, said it had expressed “serious concern” over recent US trade restrictions during the call.
China’s official Xinhua news agency described the discussions as “frank, in-depth and constructive”. The two sides agreed to strengthen communication and build trust through existing consultation channels, according to the report.
The contrasting messages underline the difficult path ahead for the US-China trade relationship despite efforts to maintain dialogue.
Bessent said the officials also discussed implementing the Trade and Investment Boards, which Washington sees as a mechanism for securing progress towards what it described as a more “balanced, fair and constructive” economic relationship.
Trump-Xi meeting could come in September
The latest talks are part of preparations for a possible meeting between Trump and Xi in September.
The two leaders have sought to stabilise relations after years of escalating trade restrictions, with their May meeting in Beijing producing commitments on trade and investment.
The Trump administration has highlighted China’s pledge to order 200 Boeing aircraft and purchase an additional $17 billion worth of US non-soybean agricultural products as key outcomes of that meeting.
But tensions have resurfaced since then.
China has expanded export controls affecting US rare-earth mining and processing companies as well as other businesses, while Washington has introduced additional restrictions targeting Chinese companies and products on national-security grounds.
The two countries are also locked in disputes over tariffs, supply chains, technology and artificial intelligence.
Trade truce faces fresh test
The world’s two largest economies remain under a broader trade truce that has suspended or eased some tariffs and export restrictions.
But the latest dispute over rare earths highlights how fragile that détente remains.
For Washington, ensuring reliable access to rare earths is strategically important because the minerals are used in industries ranging from electronics and electric vehicles to defence equipment.
For Beijing, export controls provide significant leverage in negotiations with the United States.
With Trump and Xi potentially meeting in September, the implementation of existing trade commitments could therefore become an important test of whether the two sides can move beyond their cycle of tariffs and export restrictions.
The latest Bessent-He talks suggest that rare earths and agricultural purchases are likely to remain central to those negotiations.
With inputs from agencies.
