China and US agree to new trade talks

China and the United States agreed on Saturday, 18, to hold a round of trade negotiations next week to avoid a new escalation in the tariff war between the world's largest economies.

Last week, Beijing announced restrictions on exports of rare earth metals, essential for industries such as technology and defense, prompting U.S. President Donald Trump to threaten retaliatory tariffs of 100%.

The Republican tycoon also warned against canceling a long-awaited meeting with his Chinese counterpart Xi Jinping in South Korea later this month on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.

In the latest sign of efforts to resolve the dispute, Chinese state media reported that Vice Premier He Lifeng and US Treasury Secretary Scott Bessent held "frank, in-depth and constructive exchanges" during a phone call on Saturday morning.

Both sides agreed to hold a new round of trade talks "as soon as possible."

Bessent has previously accused China of trying to harm the rest of the world by tightening restrictions on rare earths.

U.S. Trade Representative Jamieson Greer also participated in the video conference, according to a report by China's state-run Xinhua news agency.

Hours before the call, Fox News published excerpts of an interview with Trump in which he said he would meet with Xi at the APEC summit. /AFP