President Donald Trump is expected to speak with Chinese Communist Party leader Xi Jinping in the coming days, amid rising concerns that China has violated the terms of a recent trade agreement by restricting exports of critical industrial minerals.
U.S. Treasury Secretary Scott Bessent said on Sunday that a call between the two leaders could happen “very soon.” He expressed confidence that the conversation would address China’s failure to comply with a May 12 agreement aimed at de-escalating tariff disputes.
The agreement, brokered in Geneva, had temporarily paused tariffs and called on both countries to roll back trade restrictions, particularly involving rare earth exports essential to U.S. industries.
“The fact that they are withholding some of the products that they agreed to release during our agreement — maybe it’s a glitch in the Chinese system, maybe it’s intentional,” Bessent told CBS’s Face the Nation. “I am confident that when President Trump and Party Chairman Xi have a call, this will be ironed out.”
National Economic Council Director Kevin Hassett echoed the sentiment, saying on ABC’s This Week that President Trump is expected to have “a wonderful conversation about the trade negotiations” with Xi as early as this week. Hassett added that top negotiators from both sides have maintained daily communication to keep talks moving.
The urgency follows Trump’s May 30 statement revealing China’s ongoing export restrictions on critical minerals used in automotive, energy, and defense manufacturing. These restrictions, which were supposed to be lifted on May 14 under the Geneva agreement, remain in place despite warnings from U.S. industry leaders.
The Alliance for Automotive Innovation warned the White House that the lack of reliable access to rare earth magnets could halt production of vital car components such as transmissions, motors, sensors, and steering systems.
In a letter dated May 9, the group said supply chain breakdowns could lead to reduced output or even temporary shutdowns of vehicle assembly lines.
Commerce Secretary Howard Lutnick described China’s approach as “slow-rolling” the deal and said a direct conversation between Trump and Xi is needed to resolve the impasse. “We will see what the consequences are,” Bessent said, suggesting the administration is weighing its options if the situation does not improve.
China announced new restrictions on seven key minerals in April, and doubled down on those restrictions again on May 14—the very day they were supposed to be lifted, raising concerns in Washington and across global markets.
The Chinese regime controls approximately 90 percent of the world’s mineral processing capacity, giving it significant leverage over industrial supply chains worldwide.
While Beijing has accused the U.S. of attempting to “vilify” China through recent remarks, Bessent rejected claims that Washington is escalating tensions. He emphasized that the administration is focused on “de-risking” supply chains, not cutting ties with China.
“As we saw during COVID, whether it was with semiconductors, medicines, or other products—we’re in the process of de-risking,” Bessent said, underscoring the administration’s view that China proved to be an unreliable partner during global crises.
The upcoming Trump–Xi call is seen by the administration as a crucial opportunity to restore momentum to stalled trade talks and reinforce U.S. demands for fair and reliable trade practices, especially on critical minerals that impact national security and the economy.