Scott Bessent and He Lifeng kick off US-China trade talks in Paris.
Key Takeaways
- U.S. and China launch new Paris trade talks led by Bessent and He Lifeng.
- Paving the way for Trump-Xi summit in Beijing later this month.
- Discussions focus on tariffs, rare-earths, and high-tech export controls.
Paris Trade Talks Launch
Top officials from the United States and China have launched a new round of talks in Paris with US Treasury Secretary Scott Bessent meeting Chinese Vice Premier He Lifeng at the Organisation for Economic Cooperation and Development headquarters on Sunday (15 March).
“Top officials from the United States and China have launched a new round of talks before a summit between their presidents, Donald Trump and Xi Jinping, expected in Beijing later this month”
The discussions are widely viewed as preparation for an expected summit between US President Donald Trump and Chinese President Xi Jinping later this month.
Washington has confirmed Trump's planned visit to China from March 31 to April 2, though Beijing has not yet officially confirmed the dates.
The meeting follows a period of strained economic relations between Washington and Beijing throughout much of 2025.
The two countries engaged in a prolonged trade dispute that pushed reciprocal tariffs into triple-digit levels.
Trade Agenda Items
The discussions are expected to focus on several key economic issues with the US seeking increased Chinese purchases of agricultural products such as soybeans, Boeing aircraft, and liquefied natural gas.
China aims for a reduction in US tariffs and a loosening of high-tech export controls that have restricted trade flows.
The talks are being led by US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meeting with Chinese Vice Premier He Lifeng.
The discussions will address the flow of Chinese-produced rare earth minerals and magnets to US buyers, which are critical components for various industries.
Chinese Commerce Ministry officials stated they would 'conduct consultations on economic and trade issues of mutual concern' during the Paris meeting.
Geopolitical Pressures
The ongoing US-Israeli conflict with Iran casts a significant shadow over the economic talks.
“Published by Global Banking & Finance Review® Posted on March 15, 2026 5 min readLast updated: March 15, 2026 Published by Global Banking & Finance Review® Posted on March 15, 2026 5 min readLast updated: March 15, 2026 U”
China is deeply concerned about the stability of the Strait of Hormuz through which 45% of China's oil supplies pass.
Following US strikes on Iran's Kharg Island, Secretary Bessent announced a 30-day sanctions waiver for Russian oil to help stabilize surging global energy prices.
US trade authorities have opened new investigations that could lead to additional tariffs, including a Section 301 probe targeting China.
Another probe focuses on alleged forced labor practices in 60 countries including China.
Historical Context
The Paris talks represent the latest in a series of economic dialogues between the two nations.
They come five months after Trump and Xi met in the South Korean city of Busan and agreed to a one-year truce in their trade war.
Bessent and He Lifeng have been the primary negotiators leading trade discussions between the countries since last year.
They have previously met in Geneva, London, Stockholm, Madrid and Kuala Lumpur, Malaysia.
Trump's planned visit to China in late March would mark the first time a US president has visited China since 2017.
Expert Analysis
Experts are expressing cautious expectations about the prospects for major breakthroughs in the Paris talks or the upcoming Trump-Xi summit.
“The meetings, led by U”
Washington's attention is heavily focused on the Middle East conflict with Iran.
China's status as a non-member of the 38-nation OECD and its self-identification as a developing country add complexity to the negotiations.
US-China trade analysts note the limited time available for preparation and competing priorities.
The talks may serve more as a holding action to prevent significant deterioration in relations rather than achieving substantive progress.
Broader Significance
The significance of these talks extends beyond bilateral economic relations.
They represent a critical test of the current US-China diplomatic engagement.
The discussions follow a period where economic relations had been severely strained with triple-digit tariffs.
Bessent indicated that engagement between the two sides was continuing.
The outcome will help determine whether the US and China can establish a more stable framework for managing their economic relationship.
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