Economic Tensions: Trump-Xi Meeting Aims to Ease Trade Conflict
The anticipated meeting between U.S. President Donald Trump and Chinese leader Xi Jinping in South Korea aims to de-escalate tensions over tariffs and export controls. This follows China's increased rare earths export restrictions and subsequent U.S. tariff threats, sparking market volatility and international diplomatic efforts.
The meeting between U.S. President Donald Trump and Chinese leader Xi Jinping, planned for late October in South Korea, seeks to ease the escalating trade tensions over tariff threats and export controls. U.S. Treasury Secretary Scott Bessent confirmed the dialogue between the two nations remains constructive.
China's recent announcement to expand rare earth export controls acted as a catalyst for Trump's subsequent counter-threats. Despite mounting tension, Bessent assured that substantial communications over the weekend have helped to de-escalate the situation, keeping the planned meetings on course.
While the diplomatic discussions continue, Asian markets have shown signs of recovery. The ongoing negotiation efforts aim to secure a more stable economic relationship amid concerns over the frothy stock market driven by rapid technological investments.
(With inputs from agencies.)
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