The United States and China are in talks to calm rising tensions in their trade conflict.
Tensions between the world’s two largest economies escalated after US President Donald Trump threatened a massive increase in tariffs on Chinese products.
This warning came in response to Beijing's stricter rules on rare earth exports.
President Trump also threatened to cancel a meeting with Chinese President Xi Jinping.
However, the US Treasury Secretary, Scott Bessent said President Trump is still planning to meet with China's President in South Korea later in October to reduce tensions between the two countries regarding tariffs and China's export restrictions.
"President Trump said that the tariffs would not go into effect until November 1. He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on," Bessent said in an interview with Fox Business Network.
Treasury Secretary also said that he plans to meet with China’s Vice Premier He Lifeng in Asia before the scheduled Trump-Xi meeting.
He further stated that the US-China relationship is still "good and that Trump's threat of a full 100% tariff doesn't necessarily need to happen.
Bessent stressed that China should reverse its plan to restrict rare earth magnets exports.
On the other hand, these positive comments helped calm investors, leading to rise in US stock markets on Monday, with the Nasdaq up nearly 2% and other major indexes up about 1%.
