Trade Diplomacy: Trump and Xi's Pivotal Meeting Amid Economic Tensions

Tensions remain high between the U.S. and China as President Donald Trump and Chinese leader Xi Jinping plan to meet in South Korea in late October. The meeting aims to ease tariff threats, spurred by China's new export control measures on rare earth elements, further straining global economic relations.

U.S. Treasury Secretary Scott Bessent described active communications between both nations over the weekend, with further meetings anticipated. Bessent assured that tariffs would not be enacted until November 1, coinciding with a planned summit during the Asia-Pacific Economic Cooperation forum hosted by South Korea.

Investor anxiety cooled as Wall Street experienced an uptick on Monday, buoyed by hopes of easing tensions. However, challenges persist, highlighted by China's control over rare earth exports, crucial for tech manufacturing, which has sparked criticism and accusations of economic command. Despite provocations, U.S.-China communication channels remain open.

(With inputs from agencies.)