US Treasury Secretary: Trade tensions with China have calmed down and China says that it agrees to new trade talks with the United States as soon as possible

US Treasury Secretary Scott Bessent said Friday that trade tensions between Washington and Beijing have eased, ahead of a later call with his Chinese counterpart.

“I think things have calmed down,” Bessent told reporters at the White House.

“I hope China will show the respect we showed them,” he added.

He added that he would speak by phone with his Chinese counterpart, He Lifeng, later in the evening regarding the ongoing trade negotiations between the two countries.

The two officials will also meet in Malaysia, perhaps in the next week, to prepare for the meeting between Presidents Donald Trump and Xi Jinping.

The high-level economic talks will take place amid escalating trade tensions between the world’s two largest economies after Beijing announced tightening export controls on rare earths, prompting an angry response from Trump.

Bessent accused China of seeking to harm the global economy after Beijing announced new export controls, while the US Treasury Secretary said he would speak with his country’s allies to determine a response.

Trump quickly threatened to impose additional 100% tariffs on Chinese imports and cancel his scheduled talks in South Korea with his Chinese counterpart, Xi Jinping.

However, the US president said in an interview with Fox News, excerpts of which were published on Friday, that he would meet with Xi at the Asia-Pacific Economic Cooperation (APEC) summit.

Trade tensions between China and the United States flared again this year when Trump announced sweeping tariffs on American imports, prompting tit-for-tat retaliation from both sides.

At one point, the tariffs imposed by both sides exceeded 100%, bringing some trade to a standstill while businesses waited for a resolution.

The two powers have since reduced the tariffs they imposed on each other as part of a still fragile truce.

“We won’t let a bunch of bureaucrats in Beijing try to manage global supply chains,” Bessent said at a press conference on Wednesday.

China on the other hand, said on Saturday that it has agreed to hold a new round of trade talks with the United States “as soon as possible,” as the two countries seek to avoid another devastating tariff battle.

The announcement came after a video call between China’s chief negotiator, Vice Premier He Lifeng, and US Treasury Secretary Scott Bessent, during which “candid, in-depth, and constructive exchanges” took place.

Trade tensions between Washington and Beijing have been escalating since last week after Beijing announced it would tighten controls on rare earth exports.

The US government appears to be seeking to de-escalate the situation, with Donald Trump announcing his willingness to meet his Chinese counterpart, Xi Jinping, soon.