US-China trade talks in Paris test fragile truce ahead of Trump-Xi summit

US-China trade talks in Paris test fragile truce ahead of Trump-Xi summit
Negotiators tackle tariffs, rare-earth supplies and geopolitical risks as investors watch for signs of lasting stability in the world’s most critical economic relationship.
MAR 15, 2026

US-China trade diplomacy entered a critical phase this weekend as senior economic officials from both countries met in Paris. 

With an expected meeting ahead between the two superpowers' leaders, the talks, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are aimed at reinforcing a fragile truce that has prevented further escalation of trade tensions. 

Reuters reported that negotiators are addressing a range of contentious issues including tariffs, export controls, supply chains and access to rare-earth minerals, underscoring the breadth of unresolved disputes shaping the bilateral relationship.

Groundwork for visit

The Paris meetings are widely viewed as groundwork for Trump’s expected visit to Beijing beginning March 31, although Chinese authorities have yet to formally confirm the trip.

According to AP News, delegations from both sides began negotiations on Sunday and are scheduled to continue through Monday as officials attempt to ease tensions that have persisted despite earlier diplomatic engagement.

US commodities 

In Paris, officials are reviewing progress made under the earlier understanding, including China’s commitment to increase imports of US commodities such as soybeans.

Fresh policy tensions are also shaping the backdrop to the talks. Reuters reported that Washington has launched new investigations into what it describes as unfair trade practices, including concerns related to industrial overcapacity and labour issues.

Geopolitical risks beyond bilateral trade are adding further uncertainty, not least the US conflict with Iran which has raised concerns in Beijing regarding energy supplies. 

For investors, the significance of the Paris talks extends beyond near-term policy signals.

Trade frictions between the US and China have repeatedly triggered volatility across equities, commodities and currencies, while supply chain disruptions have influenced corporate investment decisions.

As preparations continue for a possible Trump-Xi meeting, markets will be watching closely for concrete steps toward stabilising tariffs, improving access to critical materials and reducing policy uncertainty.

Even incremental progress could help restore confidence in cross-border investment and trade flows, while a breakdown in talks risks reviving protectionist measures that have previously weighed on manufacturing activity and financial markets.

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