Trump–Xi summit still on despite new trade flare-up, says US Treasury chief

The White House insists plans for a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping later this month are still intact, even after the two countries traded fresh blows in their long-running economic rivalry.

US Treasury Secretary Scott Bessent told Fox Business on Monday that both sides had “substantially de-escalated” following last week’s tariff shock and that “lines of communication have reopened.” He said Trump’s planned face-to-face with Xi at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea was moving ahead as planned.

“He will be meeting with [Communist] Party Chair Xi in Korea,” Bessent said. “I believe that meeting will still be on.”

The optimism followed several turbulent days in US-China trade relations. After Beijing expanded export controls on rare earth minerals — key components in everything from electric cars to weapons systems — Trump announced a 100 percent tariff on Chinese goods starting November 1.

But Bessent said the “100 percent tariff does not have to happen” if progress is made in negotiations. He also downplayed the tension, suggesting the export controls “may have come from a lower-level official rather than Xi himself.”

Trump himself struck an unusually soothing tone.

“Don’t worry about China, it will all be fine!” he posted on Truth Social. “Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”

The message calmed Wall Street after a Friday sell-off triggered by Trump’s tariff threat. Markets rebounded sharply Monday morning, banking on a thaw between Washington and Beijing.

Still, Bessent made clear that the administration viewed China’s export restrictions as a direct challenge.

“They have pointed a bazooka at the supply chains and the industrial base of the entire free world,” he said. “And we’re not going to have it.”

China’s Ministry of Commerce fired back, calling the US response “provocative and damaging.” It accused Washington of hypocrisy after years of sanctions, blacklisting Chinese companies, and imposing new port fees on China-linked ships.