China and US Trade Officials Hold Call Ahead of Expected Trump-Xi Meeting, Rare Earths Dispute Persists

China and the United States have held a new round of high-level economic and trade discussions as both sides prepare for an expected meeting between President Xi Jinping and U.S. President Donald Trump later this month, with disagreements over rare earth supplies, agricultural purchases and Washington's latest restrictions remaining unresolved.

Chinese Vice Premier He Lifeng held a video call on Friday with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, according to a report published by China's Xinhua News Agency. The officials exchanged views on key economic and trade issues and discussed the implementation of agreements reached during previous negotiations.

Beijing expressed serious concern over recent U.S. restrictions targeting Chinese companies and urged Washington to correct what it described as wrongful practices. The two sides agreed to continue using their economic and trade consultation mechanism, strengthen cooperation and manage differences, according to the Chinese account reported by Xinhua.

Washington's account placed particular emphasis on China's implementation of existing commitments. In a statement published by the Office of the United States Trade Representative, Greer said China needed to take concrete action to fulfill previous commitments, particularly those involving agricultural purchases, rare earths and other critical minerals.

The U.S. administration said it would monitor compliance with the agreements while seeking benefits for American farmers, manufacturers and workers. The statement did not provide a detailed breakdown of the outstanding deliveries or purchases discussed during the call.

The exchange comes as the two countries prepare for further trade discussions expected in Shenzhen later this month. The talks are expected to precede a meeting between Xi and Trump on the sidelines of the Asia-Pacific Economic Cooperation summit. The anticipated leaders' meeting would be an important opportunity to address the fragile trade understanding between the world's two largest economies.

The dispute over rare earths remains particularly sensitive. China occupies a central position in the global supply chain for rare earth elements and several processed critical minerals used in electric vehicles, electronics, renewable energy equipment and defense-related manufacturing. U.S. manufacturers have sought to reduce their dependence on Chinese supplies, while Washington has pressed Beijing to ensure that agreed exports can proceed without unnecessary delays.

Agricultural trade is another important part of the negotiations. U.S. officials have highlighted China's commitments to purchase American agricultural products, including soybeans. For American farmers, access to the Chinese market is commercially significant because China is one of the world's largest agricultural importers.

However, the two governments continue to differ over the interpretation and implementation of their previous commitments. Washington has raised concerns about access to critical minerals and the pace of purchases, while Beijing has criticized U.S. restrictions affecting Chinese businesses.

The latest call suggests that both sides are seeking to keep negotiations active rather than allow disagreements to derail the broader relationship. Yet the absence of a detailed joint statement or announcement of new concessions indicates that important differences remain.

For global markets, the outcome of the next round of negotiations could influence commodity flows, technology supply chains and business confidence. Companies that rely on rare earths, semiconductor materials, agricultural exports and cross-border manufacturing will be watching for signs of whether the two governments can stabilize trade relations ahead of the leaders' meeting.