Tensions are mounting between the United States and China over critical mineral trade, but U.S. Treasury Secretary Bessent believes relief may be on the horizon. He indicated that a direct conversation between former President Donald Trump and Chinese President Xi Jinping is likely to take place soon, potentially opening a path toward easing a major dispute involving vital industrial resources.
At the center of the issue is an agreement that both countries previously made to roll back tariffs and trade restrictions on key minerals. However, Trump accused China on Friday of failing to uphold its end of the deal. According to him, China has withheld exports of critical materials essential to global supply chains, affecting not just the U.S., but also countries like India and those across Europe. "That’s not how a dependable trade partner behaves," Treasury Secretary Bessent stated during an interview on CBS's Face the Nation.
Bessent expressed hope that an impending Trump-Xi phone call would help resolve the dispute. He described the current situation as uncertain, noting that China may be either deliberately defying the agreement or facing internal systemic delays. “We’ll know more after the President speaks with Chairman Xi,” Bessent said. The implication is that direct diplomatic engagement at the highest level is the key to breaking the deadlock.
The backdrop of this tension is growing global concern over access to critical minerals—elements like lithium, cobalt, and rare earth metals—that are vital to industries ranging from electric vehicles to defense systems. The withholding of these minerals can severely disrupt international production and economic stability, raising alarm across allied nations.
China, for its part, has acknowledged that there hasn’t been recent communication between the two leaders, with the last official engagement occurring months ago. Yet Trump expressed confidence on Friday that a discussion would happen soon, signaling his readiness to tackle the matter directly with Xi. According to Bessent, such a call is not just expected—it’s imminent.
As the world watches closely, both market analysts and political observers are speculating about the potential outcomes of the anticipated Trump-Xi dialogue. If successful, it could defuse one of the more critical points of trade friction between the world’s two largest economies. If it fails, however, the ripple effects may extend well beyond U.S.-China relations, putting further strain on already fragile global supply networks.