U.S. and China Seek Trade Framework Ahead of Xi-Trump Summit, Eyeing Deals on Agriculture and Minerals

PARIS, March 16 (Reuters) – U.S. and Chinese negotiators worked into Monday to finalize a package of potential agreements on agriculture, critical minerals, and a new framework for managing trade, aiming to set the stage for a summit between Presidents Donald Trump and Xi Jinping later this month, according to sources briefed on the discussions.

The talks, described by participants as "remarkably stable," are led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Their goal is to outline concrete "deliverables" for Trump's expected visit to Beijing in late March, though sources caution the final decisions rest with the two leaders.

In a complicating development, President Trump told the Financial Times on Sunday he might delay the summit, linking it to pressuring China to help resolve the closure of the Strait of Hormuz by Iran. "We may delay," he said of the trip, casting some uncertainty over the diplomatic calendar.

The marathon negotiating sessions, held at the Paris headquarters of the Organisation for Economic Cooperation and Development (OECD), stretched over six hours on Sunday. One key area of progress involves China signaling openness to additional purchases of U.S. agricultural products like poultry, beef, and non-soybean row crops. Beijing remains committed to its existing pledge to buy 25 million metric tons of American soybeans annually under a 2025 truce.

Officials from both sides were tight-lipped publicly. U.S. spokespersons declined to comment, while Chinese officials left without addressing reporters. However, China's state-run Xinhua news agency underscored the high stakes in a Sunday commentary, stating that "meaningful" progress could "restore confidence to an increasingly fragile global economy."

Forging New Channels

At the heart of the discussions is a proposal to create formal, cabinet-level mechanisms to manage the world's largest bilateral economic relationship. Technical talks on a proposed "U.S.-China Board of Trade" and a "Board of Investment" were scheduled for Monday.

Sources indicate the Board of Trade concept is more advanced. It would aim to identify specific products and sectors where trade could be expanded in a balanced manner, without compromising national security or critical supply chains. The parallel Investment Board would not set broad policy but would serve as a forum to address discrete investment disputes as they arise.

Minerals and Energy on the Table

U.S. negotiators also raised strategic concerns regarding access to Chinese-produced critical minerals, vital for advanced manufacturing and defense. Specific discussions touched on yttrium, used in jet engine turbines, where U.S. aerospace firms face supply constraints. While sources said the sides "found some ways to loosen up" in this challenging area, details remain scarce.

Further U.S. priorities include pushing for increased Chinese purchases of Boeing aircraft and American coal, oil, and natural gas—topics expected to see further discussion.

Yet, trade analysts remain cautious about immediate, sweeping breakthroughs. With Washington's attention divided by Middle East tensions and limited preparation time, the Paris talks and the potential summit may yield incremental progress rather than a grand bargain.

"Given that the leaders may meet up to four times this year, these deliverables maybe can be spread out, rolled out over the year," said Wendy Cutler, a former U.S. trade negotiator now with the Asia Society Policy Institute. Potential future meetings include a possible Xi visit to Washington, the APEC summit in China, and the G20 in the U.S.

Reaction & Analysis

"This is about damage control and creating predictable channels," said Michael Thorne, a senior fellow at the Center for Strategic Studies. "The 'Boards' concept is bureaucratic but pragmatic—it institutionalizes dialogue away from the public volatility of tweets and headlines."

"More agricultural purchases? It's a recycled concession. Beijing is offering what it was already buying to create the illusion of progress while protecting its core tech and industrial policies," argued Lisa Moreno, a trade attorney with Bergman & Associates, her tone sharp with skepticism. "The mineral talks are the real tell—the U.S. is desperate to secure supply chains it let atrophy, and China knows it."

"For global markets, even a modest framework agreement would be a relief," noted David Park, an emerging markets portfolio manager. "It signals both giants recognize the economic cost of uncontrolled friction, especially with growth slowing worldwide."

"The delay threat from Trump is classic pressure tactics," observed Professor Anya Sharma of Georgetown University. "It reminds everyone, including U.S. farmers and businesses eager for a deal, that the summit itself is a concession he can withhold to extract more."

(Reporting by David Lawder and Elizabeth Howcroft in Paris and Shi Bu in Beijing; Editing by Diane Craft)