China Raises Trade Concerns in US Call as Summit Nears
Chinese Vice Premier He Lifeng expressed “serious concern” over recent US economic and trade restrictions during a video call with Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, as both sides worked to steady relations ahead of a planned September meeting between Presidents Xi Jinping and Donald Trump.
The call, held on the evening of July 30 Beijing time, focused on implementing the consensus of the May Beijing summit between the two leaders. According to Xinhua via People’s Daily, the two sides conducted “candid, in-depth, and constructive” exchanges on keeping economic and trade ties stable, expanding practical cooperation, and properly addressing each other’s concerns. They agreed to make fuller use of the China-US economic and trade consultation mechanism under the strategic guidance of the two heads of state.
Context: A Fragile Truce
The conversation follows a trade truce reached late last year that halted the tariff war between the world’s two largest economies. Relations had remained largely stable since, Reuters reported, with Washington and Beijing agreeing this year to establish a Board of Trade to explore cutting duties on goods worth about US$30 billion. China said last week it was seeking opinions on planned tariff cuts. Last week, however, the US announced new tariffs of 10% and 12.5% on goods from 60 trading partners over alleged lax enforcement of forced-labour bans, assigning China the higher rate.
That truce paved the way for Trump’s state visit to Beijing in May, where China committed to addressing US concerns over rare-earth and critical-mineral supply chains, approving an initial batch of 200 Boeing aircraft, and buying at least US$17 billion of US agricultural products per year through 2028, according to The Epoch Times, citing a White House fact sheet.
On July 28, the US Federal Communications Commission added foreign-produced advanced robotics equipment and grid-connected inverters to its restricted list — a step widely read as effectively targeting Chinese products given China’s dominance in those sectors, according to Lianhe Zaobao. Beijing’s commerce ministry has warned it would “resolutely retaliate” if Washington persists.
Differing Readouts
The two sides’ public statements highlight contrasting priorities. Bessent said on X that the call was a preparatory step ahead of Xi’s September visit to the US. “I emphasised that we expect Beijing to fully meet its commitments on rare earths and US agricultural products,” he wrote, adding that the two sides discussed implementing the Trade and Investment Boards as a mechanism for progress towards a “more balanced, fair and constructive” economic relationship. The Straits Times reported the comments.
China’s official readout, by contrast, framed the call in terms of consensus, cooperation and the consultation mechanism, and did not mention rare earths, agricultural purchases or the Trade and Investment Boards. The omissions underscore how far apart the two sides remain on the substance of the relationship, even as both express interest in continued dialogue.
Behind the scenes, the tone may be harder still. The Epoch Times, citing Axios, reported the video call lasted over an hour, with a source familiar with the negotiations saying China had created “new risks” for US companies and warning that “China’s continued escalation will inevitably have consequences.”
Analysis: Positioning Ahead of September
The divergent narratives reflect each side’s negotiating posture before the leaders’ meeting. Washington is signalling that it expects deliverables — on rare earths access, agricultural purchases and a more balanced trading relationship — while Beijing is emphasising stability, mechanism-building and opposition to what it calls “unilateral bullying.”
The wider backdrop remains fraught. Friction points include rare-earth supply chains, US efforts to restrict China’s access to advanced chips, the emergence of Chinese open-weight AI models that compete with US systems, and recurring disputes over TikTok. Bessent and He have met regularly over the past year and a half to manage exactly these kinds of flashpoints.
What’s Next
Attention now turns to September, when Xi is due to visit the US for a meeting with Trump. The video call shows both governments are still engaged — but also positioning for what is likely to be a difficult summit. Whether the Board of Trade delivers tangible tariff relief, and whether Beijing is seen to honour its purchase commitments, will help set the tone.