FX.co ★ Breakthrough Possible in U.S.-China Trade Talks Amid Soy Tensions

On Thursday, U.S. Treasury Secretary Scott Bessent forecasted a significant breakthrough in the forthcoming U.S.-China trade discussions. This optimism comes even as the Trump administration prepares measures to assist American farmers impacted by a notable decline in Chinese purchases of soybeans. A critical bilateral meeting is scheduled between President Trump and President Xi Jinping at the late-October summit in South Korea, in tandem with the fifth round of negotiations between Bessent and Vice Premier He Lifeng. Agricultural trade, particularly regarding soybeans, remains a key point of contention, with China utilizing its trade power and control over rare earth elements to influence U.S. tariffs and export restrictions. To date, China has not purchased any soybeans from this year’s U.S. harvest, leading to storage concerns. President Xi has also reiterated the need for a "fair and non-discriminatory" investment climate and urged the U.S. against implementing restrictive measures. Bessent noted that support measures for U.S. farmers, especially those focused on soybeans, will be announced next Tuesday, as the discussions take place ahead of the November 10th expiration of the tariff truce.