Paris, 15 March 2026 – Senior economic officials from the United States and China have begun talks in Paris aimed at stabilising trade relations and preparing the ground for a planned summit between Donald Trump and Xi Jinping later this month.
The discussions bring together Scott Bessent and He Lifeng, two officials responsible for managing the economic relationship between the world’s largest economies.
The Paris meeting is seen as a key step in clearing diplomatic and economic obstacles ahead of a potential leaders’ summit expected to take place in Beijing at the end of March.
Key Issues on the Agenda
Negotiators are expected to address several contentious issues that have shaped the U.S.–China economic relationship in recent years.
Among the topics under discussion are:
- U.S. tariffs on Chinese imports
- Chinese export controls on rare earth minerals
- U.S. restrictions on high-technology exports to China
- Chinese purchases of U.S. goods such as soybeans and aircraft
These issues form the backbone of the ongoing trade dispute between the two powers and remain central to any potential economic agreement.
Officials are also reviewing progress on a 2025 trade truce agreement reached in Busan, which temporarily eased tensions after years of escalating tariffs and technology restrictions.
Rising Tensions Ahead of Negotiations
Despite the diplomatic engagement, tensions remain high.
China recently criticised a new U.S. Section 301 trade investigation targeting alleged industrial overcapacity and labour practices. Beijing has warned that it may take countermeasures if the probe results in punitive trade measures.
The dispute highlights the fragile nature of economic ties between the two countries, which remain deeply intertwined despite political rivalry.
Global Context: War and Energy Shock
The talks are also unfolding against a backdrop of global geopolitical instability, particularly the ongoing Middle East conflict that has driven oil prices sharply higher.
Analysts say the energy shock and global market volatility could encourage Washington and Beijing to avoid further trade escalation and instead prioritise economic stability.
Both countries remain crucial pillars of the global economy, accounting for a large share of global trade, manufacturing and financial flows.
A Summit With Modest Expectations
While the Paris talks are important diplomatically, analysts caution that expectations for a major breakthrough remain limited.
Most observers believe the upcoming Trump–Xi summit will likely focus on maintaining stability in economic relations rather than producing sweeping trade agreements.
Still, even incremental progress could help reduce uncertainty in global markets and signal continued dialogue between the two economic superpowers.
