US-China Trade Talks: Paris Meeting Aims to Salvage Truce Ahead of Trump-Xi Summit

Paris Talks Aim to Stabilize US-China Trade Ahead of Potential Summit

PARIS — High-stakes economic talks between top US and Chinese officials commenced in Paris on Sunday, March 15, 2026, as both nations seek to solidify a fragile trade truce and lay the groundwork for a potential summit between US President Donald Trump and Chinese President Xi Jinping later this month. Led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the discussions center on a complex web of trade irritants, including US tariffs, access to rare earth minerals, export controls, and agricultural purchases. The meeting, held at the Organisation for Economic Cooperation and Development (OECD) headquarters, represents a crucial attempt to manage economic tensions amid escalating geopolitical concerns, particularly the ongoing US-Israeli war with Iran.

The Core Issues on the Table

The agenda for the Paris talks is ambitious, encompassing several key areas of contention. A primary focus is the shifting landscape of US tariffs on Chinese imports. Whereas a preliminary deal reached in October 2025 trimmed some tariffs, the overall structure remains a point of friction. China is also seeking greater clarity regarding US export controls, particularly those impacting its access to advanced technologies. Conversely, the US is pressing for increased purchases of American agricultural products, specifically soybeans, and improved access to critical minerals, including rare earth elements essential for manufacturing high-tech goods. The flow of Chinese-produced rare earth minerals and magnets to US buyers is a particularly sensitive issue, as the US currently relies heavily on China for these materials.

US Trade Representative Jamieson Greer’s presence at the talks underscores the breadth of issues under discussion. The continuation of meetings in European cities, following a series of discussions last year, highlights the sustained effort to de-escalate trade tensions between the world’s two largest economies.

Limited Breakthroughs Expected, Focus on Stability

Despite the importance of the meeting, analysts suggest the prospects for a major trade breakthrough in Paris or at the anticipated Beijing summit are limited. Scott Kennedy, a China economics expert at the Centre for Strategic and International Studies in Washington, suggests both sides are primarily focused on maintaining stability and preventing a further deterioration in relations. “Both sides, I think have a minimum goal of having a meeting, which sort of keeps things together and avoids a rupture and re-escalation of tensions,” Kennedy stated. CNBC reports that Trump may seek commitments from China regarding purchases of Boeing aircraft and US liquefied natural gas, but concessions on US export controls may be necessary to secure such agreements.

The expectation is that any progress will be “superficially” positive, leaving the fundamental issues largely unresolved for the time being. Further opportunities for more substantial progress are anticipated at the Asia-Pacific Economic Cooperation (APEC) summit in China in November and the G20 summit hosted by the US in December.

Geopolitical Shadows: The Iran Conflict and Oil Prices

The ongoing US-Israeli war with Iran casts a long shadow over the trade talks. Concerns about potential disruptions to oil supplies, particularly through the Strait of Hormuz – a critical waterway for China’s energy imports (approximately 45% of its oil passes through the strait) – are a significant factor. The potential closure of the Strait of Hormuz could have severe economic consequences for both countries. In response to the escalating tensions, Treasury Secretary Bessent announced a 30-day waiver of sanctions to facilitate the sale of Russian oil stranded at sea, a move intended to bolster global supplies. Politico details Trump’s call for international assistance in protecting shipping in the Strait of Hormuz following US military strikes on Iranian oil infrastructure.

China’s state-run China Daily newspaper emphasized the need for continued dialogue between the US and China as a “stabilising anchor” amidst the Middle East crisis, arguing that a trade war between the two economic giants would be detrimental to global stability.

Reviewing the October 2025 Trade Truce

The Paris talks will also serve as a review of the progress made under the trade truce agreed upon by Trump and Xi in Busan, South Korea, in October 2025. This agreement temporarily eased tensions, reduced some US tariffs, and paused China’s export controls on rare earths. It also halted the expansion of a US blacklist targeting Chinese companies restricted from purchasing US high-technology goods.

China committed to purchasing 12 million metric tons of US soybeans in the 2025 marketing year and 25 million tons in the 2026 season. US officials have reported that China has largely met its initial soybean purchase commitments. However, access to rare earth exports remains a challenge for US industries, particularly aerospace and semiconductor firms, which are facing shortages of key materials like yttrium. Al Jazeera reports that William Chou, a senior fellow at the Hudson Institute, anticipates US priorities will focus on agricultural purchases and increased access to Chinese rare earths.

New Trade Probes Add Complexity

Adding another layer of complexity to the negotiations, US Trade Representative Greer and Treasury Secretary Bessent have initiated new “Section 301” investigations into alleged unfair trade practices by China and 15 other major trading partners. These probes focus on concerns about excess industrial capacity and could lead to the imposition of new tariffs. Greer has also launched a separate investigation into alleged forced labor practices in 60 countries, including China, potentially leading to import bans. These actions aim to rebuild tariff pressure on trading partners after a recent Supreme Court ruling limited Trump’s authority to impose global tariffs under emergency laws. China has denounced the probes and warned it reserves the right to retaliate, calling them “unilateral actions that complicate negotiations.”

Looking Ahead: A Multi-Stage Process

The Paris talks represent the first step in a multi-stage process aimed at managing US-China trade relations. While a comprehensive breakthrough is unlikely in the immediate term, the meeting provides an opportunity to maintain dialogue and prevent further escalation. The potential summit between Trump and Xi in Beijing later this month, along with planned engagements at the APEC and G20 summits, offer additional avenues for progress. The success of these efforts will depend on both sides’ willingness to address each other’s concerns and find common ground amidst a complex geopolitical landscape. The ongoing investigations into trade practices and the volatile situation in the Middle East introduce significant uncertainties, requiring careful diplomacy and a commitment to stability from both Washington and Beijing.