U.S. Trade Representative Urges Trump-Xi Meeting Amid Escalating Trade Tensions

Call for Dialogue Amidst Trade Friction

U.S. Trade Representative Jamieson Greer has emphasized the importance of a meeting between President Donald Trump and Chinese President Xi Jinping, even as trade tensions between the two economic powers escalate. Greer stated that while China has 'overstepped' in its recent trade actions, particularly concerning expanded export controls on rare earth minerals, dialogue remains crucial. 'It makes sense for people to talk when they can,' Greer remarked in an interview. The potential meeting is reportedly still scheduled, possibly around the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

Escalating Trade Actions and Retaliation

The call for a meeting comes amidst a renewed intensification of the U.S.-China trade dispute. President Trump recently announced plans for new 100% tariffs on Chinese goods, which would be in addition to existing duties, in response to Beijing's expanded controls on rare earth exports. This move has contributed to volatility in financial markets. China's Commerce Ministry has responded by stating that 'threats of high tariffs are not the right way to get along with China' and warned of 'resolute measures' if the U.S. 'insists on going the wrong way'.

China's 'Overstep' and U.S. Leverage

Greer specifically cited China's expanded export controls on critical minerals as an area where Beijing has 'overstepped'. He noted that Chinese officials offered 'contradictory explanations' for these curbs, presenting them as both retaliatory and a national security measure. Despite the challenges, Greer highlighted the U.S.'s own leverage in the trade relationship, pointing to China's export-driven economy, declining property values, and high unemployment rates. He suggested that while the U.S. aims for a good relationship, China needs to change its approach.

Uncertainty Surrounds High-Stakes Meeting

While a meeting between the two leaders is still planned, its certainty remains contingent on China's actions. President Trump has also used social media to hint at a possible 'off-ramp' for President Xi, while simultaneously issuing veiled threats about the potential impact of a full-scale trade war on China. The ongoing discussions between senior staff from both governments in Washington indicate continued efforts to navigate the complex trade landscape, with the international community closely watching for developments that could impact global economic stability.