Bessent says U.S.-China talks ongoing despite Beijing’s sharp rhetoric

In its strongest response yet to the latest US trade measures, China said on Monday it “firmly rejects” the new restrictions imposed by Washington and urged the Trump administration to honor commitments made between the two leaders in previous phone calls.

“China firmly rejects the recent US restrictions and sanctions on China and will do what is necessary to protect its legitimate rights and interests,” the Chinese Foreign Ministry wrote on the X website.

Trump threatens to impose “huge” tariffs on China and sees “no reason” to meet with Xi

The statement added, “Threatening to impose high tariffs is not the right way to deal with China. The United States must correct its approach and act based on the common understandings reached by the two presidents in their phone conversations.”

Tensions rose last week after China said on Thursday it would expand export controls on rare earths. Relations took another tense turn when President Donald Trump outlined his countermeasures against the world’s second-largest economy the next day.

Back-and-forth between the world’s two largest economies sent markets tumbling on Friday and added new pressure to an already fragile relationship.

Trump says: Don’t worry about China after Beijing responded to the threat to impose 100% tariffs

Over the weekend there was significant communication between Washington and Beijing, Treasury Secretary Scott Becent told FOX Business’ Maria Bartiromo on Monday.

Treasury Secretary Scott Besent said he expected the meeting between Trump and Xi to take place later this month. (Andrew Harnick/Getty Images/Getty Images)

He also said that more discussions are expected, and that a meeting between Trump and Chinese leader Xi Jinping in South Korea at the end of the month remains on track.

However, it is unclear how Besant’s optimistic assessment of US-China contacts squares with Beijing’s combative tone in its latest statement.

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President Donald Trump had previously said that he did not want to get into a trade war with China. (Wayne McNamee/Getty Images/Getty Images)

“We have significantly de-escalated the situation,” Besant said during an interview on the “Morning with Maria” program.

“A 100% tariff does not need to happen,” he said, adding that the Trump administration would not move on implementing it until November 1.

He added, “The relationship is good despite this announcement last week. Lines of communication have been reopened, so we will see where it goes.”