US-China trade talks open in Paris, paving the way for Trump-Xi summit

High-level U.S.-China Economic Talks Begin in Paris Ahead of Trump’s Beijing Visit

Senior officials from the United States and China launched critical economic and trade discussions in Paris on Sunday, according to China’s state news agency Xinhua, setting the stage for President Donald Trump’s upcoming visit to Beijing.

The meetings bring together U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng as lead negotiators at a pivotal moment in the complex bilateral relationship between the world’s two largest economies.

The talks are widely viewed as a preparatory step for Trump’s anticipated state visit to China, scheduled for March 31 to April 2, when he is expected to meet with Chinese President Xi Jinping. While the White House has announced these dates, Beijing has yet to officially confirm the visit.

Speaking ahead of the Paris meetings, Bessent emphasized his team’s commitment to “continue to deliver results that put America’s farmers, workers and businesses first.” Meanwhile, China’s commerce ministry stated the discussions would address “trade and economic issues of mutual concern.”

The upcoming Beijing trip will mark Trump’s first presidential visit to China since his initial 2017 visit during his first term. The high-profile meeting follows the two leaders’ encounter in Busan, South Korea, five months ago, where they agreed to a one-year trade war truce, halting escalating tariffs that had previously reached triple digits.

Despite this temporary détente, trade tensions continue to simmer between the economic powerhouses. Just days before the Paris talks, China’s commerce ministry criticized the Trump administration’s recently launched trade investigation targeting 16 trading partners, including China. This investigation emerged after a U.S. Supreme Court ruling invalidated Trump’s earlier sweeping global tariffs, potentially opening the door for new tariff actions.

The Paris discussions might also address the ongoing conflict in the Middle East and its implications for global energy markets. With mounting concerns over oil prices and supply stability, Trump recently called for international cooperation, stating on Saturday that he hopes China, France, Japan, South Korea, the United Kingdom, and other nations will deploy naval vessels to ensure the Strait of Hormuz remains “open and safe.” The strait is a critical chokepoint for global oil shipments, particularly from the Persian Gulf region.

Gary Ng, a senior economist at French bank Natixis and research fellow at the Central European Institute of Asian Studies, highlighted the significance of the Paris meeting, calling it “likely the most important bilateral one before the Xi-Trump summit.” Ng identified the central challenge as “whether China and the U.S. can agree on what is agreed and manage disagreement,” adding that while “Iran is a new factor, Beijing is more concerned about the flip-flopping of U.S. policies.”

The evolving U.S.-China relationship has shown signs of diplomatic engagement in recent months. Last week, Chinese Foreign Minister Wang Yi characterized 2024 as a “big year” for bilateral relations. Although Wang did not explicitly confirm Trump’s state visit, he acknowledged that “the agenda of high-level exchange is already on the table.”

Sunday’s talks in Paris represent the latest in a series of negotiations between Bessent and He, who have led trade discussions between the two countries since last year. Their previous meetings have spanned the globe, taking place in Geneva, London, Stockholm, Madrid, and Kuala Lumpur.

As global markets watch closely, the outcome of these discussions could provide insights into the trajectory of U.S.-China relations during Trump’s second term and signal whether the world’s two largest economies can find common ground on trade, security, and regional cooperation despite their strategic competition in various domains.