U.S. Treasury Secretary Scott Bessent announced that President Donald Trump is expected to speak with China's Xi Jinping soon, a conversation that could help resolve ongoing trade tensions.

Bessent criticized China for withholding essential manufactured products, undermining their reliability as a trade partner.

On May 30, Trump accused China of violating a Geneva agreement aimed at reducing tariffs, which was part of a temporary pause in escalating trade measures.

The U.S. is increasingly frustrated with China's delays in approving export licenses for rare earth elements, which are crucial for manufacturing cars and chips.

Bessent believes that the upcoming conversation between Trump and Xi may address these critical mineral issues vital for industries like electric vehicles and defense technologies.

These ongoing trade negotiations are essential as they impact various sectors, including technology, manufacturing, and agriculture.

Bessent highlighted that China is withholding critical minerals necessary for high-tech products, which could become a significant point of conflict.

Since Trump's return to the presidency, he has imposed significant tariffs on various trading partners, particularly on Chinese imports, leading to escalating trade tensions.

Trade talks between the U.S. and China have reportedly stalled since a May 12 agreement aimed at pausing and rolling back tariffs.

The Court of International Trade recently ruled that the administration's use of the International Emergency Economic Powers Act did not authorize unlimited tariffs.

The anticipated discussion comes as the 90-day tariff pause negotiated between the U.S. and China approaches its deadline.

Bessent clarified that the U.S. aims to 'de-risk' relations with China rather than completely decouple, emphasizing the need for reliability in partnerships.