Senior U.S. Treasury officials concluded a high-stakes visit to Beijing last week, clearing a diplomatic path for Treasury Secretary Scott Bessent to engage in direct trade negotiations with Chinese Vice Premier He Lifeng.
Laying The Groundwork
The recent staff-level mission was designed “to strengthen channels of communication and advance the dialogue between our nations,” Secretary Bessent announced Monday.
The discussions focused heavily on technical preparations for the upcoming ministerial meeting, which serves as a critical precursor to President Donald Trump’s anticipated summit with President Xi Jinping in April.
Bessent noted that the working groups are currently focused on sustaining the diplomatic “thaw” established during previous rounds of talks. “We look forward to continued constructive engagement between both sides, and to maintain our positive forward momentum over the coming weeks as we approach our next face-to-face engagement,” Bessent stated in a post on X.
Benzinga has reached out to the U.S. Treasury Department for comment regarding the specific agenda of the recent staff visit, the exact timeline and location for the Bessent-He meeting, and whether these talks have finalized the logistics for President Trump’s April itinerary. Treasury has not yet responded to our inquiry.
Agricultural Benchmarks
A central pillar of the current trade agenda is China’s compliance with agricultural purchase targets. Treasury officials have indicated that Beijing is currently on track to meet its immediate commitments, including the purchase of 12 million metric tons of U.S. soybeans by the end of February.
These milestones are seen as essential “good faith” markers before the administration pivots to broader structural issues.
This progress follows a December phone call between Bessent, U.S. Trade Representative Jamieson Greer, and Vice Premier He, where both nations pledged to “promote the stable development of bilateral trade and economic ties.”
The Road To April
The intensifying pace of diplomacy suggests that the Trump administration is seeking to finalize a functional trade framework before the President’s travel to China this spring.
Since a pivotal October meeting in Malaysia—where a temporary truce saw Washington drop a 100% tariff in exchange for a deferment of Chinese export controls on rare earth minerals—the two economies have maintained a delicate equilibrium.
The upcoming face-to-face meeting between Bessent and He Lifeng is expected to address remaining tariff schedules and long-term purchase agreements, effectively setting the stage for the first major presidential-level trade summit of 2026.
Dow Jumps Over 3% In 2026
As of Monday’s close, the Dow Jones index rose 3.62% year-to-date, whereas the S&P 500 was 1.55% higher. However, the Nasdaq Composite index was just 0.01% higher in 2026.
Meanwhile, the U.S. futures were trading lower on early Tuesday following a positive close on Monday.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher on Monday. The SPY was up 0.48% at $693.95, while the QQQ advanced 0.77% to $614.32.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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