Trump and Xi: Navigating Trade Turbulence

U.S. President Donald Trump is gearing up for a crucial meeting with Chinese leader Xi Jinping in South Korea later this month, aiming to reduce growing trade tensions. U.S. Treasury Secretary Scott Bessent emphasized ongoing communications between the two sides to address the economic disagreements.

China's recent decision to expand export controls on rare earths triggered a strong response from Trump, who threatened to impose significant tariffs on Chinese goods. Despite this, Bessent noted that the doors for dialogue remain open, with plans for further discussions in Washington during international financial gatherings.

The situation has impacted global markets, with investors closely watching for signs of resolution. The U.S. remains firm in its stance against China's regulations, while also seeking support from international allies to challenge China's authoritative market involvement.

(With inputs from agencies.)