The United States’ economic and trade relationship with China is stable, and President Donald Trump will aim to maintain that stability in a meeting next month with Chinese President Xi Jinping, U.S. Trade Representative Jamieson Greer said on Tuesday.
“What we are not looking for is massive confrontation or anything like that,” Greer said at an event hosted by the Hudson Institute think tank.
He noted that the world’s two largest economies have settled into a stable arrangement in which the United States retains access to Chinese rare earths while maintaining substantial tariffs on Chinese goods.
“When we think about what to expect for the president’s meeting, we’re looking to maintain that stability,” Greer said. “We’re looking to ensure we can continue to get rare earths from the Chinese.”
Rare Earths and Ongoing Talks
Greer said discussions on rare earths have continued at ministerial and staff levels, even after an initial Trump-Xi summit in Beijing was postponed due to the Iran war.
He, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng had discussed the issue in Paris in March, including minerals routed through third countries before reaching the United States.
“It would be nice not to have it come up at the leaders’ meeting,” Greer said, expressing hope that the matter could be resolved before the summit.
He added that the United States is working on plurilateral agreements to boost alternative supplies of critical minerals, though such efforts would require price floor mechanisms to guard against potential future price cuts by China.
China’s Response
Chinese foreign ministry spokesperson Mao Ning said both countries should work together to implement existing agreements reached by their leaders to enhance stability in economic and trade co-operation.
Proposed Trade and Investment Mechanisms
Greer said the United States and China are exploring the creation of a “Board of Trade” mechanism for Trump and Xi to consider. This body would determine what goods could be traded sustainably without crossing national security boundaries.
He also mentioned discussions around a possible “Board of Investment”, which would address specific investment issues, such as obstacles faced by companies, rather than broader policy questions.
Investment Concerns
Trump has indicated openness to Chinese electric vehicle maker BYD establishing a plant in the United States. However, U.S. lawmakers have raised concerns that allowing such investments from state-supported firms could pose a significant challenge to the American auto industry.
Greer said investment discussions remain at an early stage, adding that the priority remains addressing the trade deficit between the two countries.
(with inputs from Reuters)
