The United States has urged China to meet commitments from a trade agreement made in Busan, South Korea, nearly a year ago. This request comes before meetings between US President Donald Trump and Chinese President Xi Jinping on November 18-19 and December 14-15. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer stressed the need for China to follow through on its commitments, especially regarding rare earths and agricultural purchases. This was discussed during a video call with Chinese Vice Premier He Lifeng on November 6.
Key Details
Bessent noted that continued progress relies on "concrete results" from China. He expressed worries about recent actions by Beijing that could affect the agreement's implementation. Greer also highlighted the need for immediate steps to fulfill the commitments made in the Busan deal, according to a statement from the US Trade Representative’s Office.
Background
China shared its own concerns during the talks, particularly about US trade restrictions. Both sides described the conversation as frank and constructive. They agreed to enhance cooperation and manage their differences. China has shown a willingness to increase agricultural purchases from the US, but this is dependent on a reciprocal tariff reduction agreement, as stated by a spokesperson from the Chinese Ministry of Commerce.
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Ongoing negotiations and potential outcomes could affect sectors related to agriculture and rare earths. Any delays in compliance may lead to increased scrutiny of trade flows and tariffs. Investors will look for clear outcomes from the upcoming Trump-Xi meetings, which may influence future trade relations between the two largest economies.
Based on reporting by: businesstimes.com.sg, livemint.com