Trump and Xi Set to Meet in Korea as U.S.–China Trade War Escalates Again
The United States and China appear determined to keep communication lines open despite the latest escalation in their trade conflict.
Treasury Secretary Scott Bessent confirmed that President Donald Trump and China’s Xi Jinping still plan to meet later this month, even after a turbulent week of threats and retaliatory measures.
The planned face-to-face discussion is expected to take place at the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea, in late October. Bessent said preparations are continuing, describing the upcoming encounter as “still on the calendar,” a sign that both governments are trying to contain the fallout from their latest trade clash.
From Tariffs to Rare Earths: Tensions Resurface
The renewed strain began after Beijing imposed sweeping controls on exports of rare earth elements and other key industrial materials, tightening access to resources critical for global manufacturing. The move reignited fears of supply shortages and drew immediate condemnation from Washington.
President Trump, responding on Friday, warned that the U.S. would implement a 100% tariff on Chinese imports starting November 1 unless an agreement was reached. His online remarks initially hinted that the summit could be scrapped altogether, but he softened his tone two days later, writing that “the USA wants to help China, not hurt it,” in what appeared to be a deliberate de-escalation.
Behind the Scenes: Quiet Negotiations
According to Bessent, both countries have maintained a steady stream of communication since the weekend. He revealed that senior officials are holding meetings in Washington during the IMF–World Bank gatherings, describing the talks as “substantial” and “productive.”
Still, the Treasury Secretary delivered a pointed critique of China’s approach, warning that attempts to weaponize resource exports could have far-reaching consequences. “They’ve aimed a bazooka at the world’s supply chains,” he said. “We won’t allow them to dictate the terms of trade to the free world.”
A Fragile Calm Before the Summit
Despite the sharp rhetoric, diplomats on both sides appear to be preparing for negotiations rather than confrontation. The meeting in South Korea could serve as a crucial opportunity to ease tensions, especially as the rare earth dispute threatens sectors from defense manufacturing to electric vehicle production.
Observers see this as another chapter in the uneasy relationship between the two powers – one marked by competition, but also by a reluctant interdependence neither side can fully sever. Whether the Trump–Xi summit brings relief or fresh turmoil remains to be seen, but for now, dialogue appears to have survived yet another test.
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Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
