Tensions between the U.S. and China escalated in the weeks leading up to a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping. In response to recent U.S. restrictions, China plans to expand permitting requirements on rare earth products. Trump has threatened a 100% tariff on Chinese goods. Such is the game between the world’s two largest economies, with both sides seeking an upper hand in the highly-watched trade negotiations.
China and the United States, Fall 2025: A timeline of remarks, threats, critiques – and dialogue
Tensions between the U.S. and China escalated in the weeks leading up to a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping. In response to recent U.S. restrictions, China plans to expand permitting requirements on rare earth products. Trump has threatened a 100% tariff on Chinese goods. Such is the game between the world’s two largest economies, with both sides seeking an upper hand in the highly-watched trade negotiations.
Here’s a look at how it unfolded over the past month.
Trump and Xi have a phone call, and Trump announces plans for leaders to meet in South Korea toward the end of October. Trump posts on Truth Social: “I just completed a very productive call with President Xi of China. The call was a very good one.” China says the two leaders had a “candid and in-depth exchange of views.”
The U.S. Commerce Department issues a new rule to drastically extend export restrictions not only on blacklisted foreign companies but their affiliates, defined as those that are at least 50% owned by blacklisted entities. Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, says the rule will be “closing the loopholes and ensuring that export controls work as intended.” China immediately protests, calling it another “typical case” of the U.S. broadening national security and abusing export control. The Chinese Commerce Ministry says the act is “extremely bad” and will “severely harm the legitimate interests of companies.”
