The world’s two largest economies are to hold a final round of trade negotiations in Seoul this week, just days before President Donald Trump’s state visit to Beijing for a summit with President Xi Jinping. Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent will lead their delegations in the South Korean capital on Tuesday and Wednesday, discussing what both sides describe as “economic and trade issues of mutual interest”. The meeting, confirmed by Beijing and Washington over the weekend, is the latest in a series of encounters that have included a Paris round in March and a video call in April.

Viewed from Washington, the timing is critical. The Trump administration has been pushing for concrete progress on Chinese industrial subsidies, access to markets for American goods, and the flow of advanced technologies such as AI chips and rare earths. These issues are expected to dominate the summit agenda.

The Chinese side, analysts in London note, approaches the talks with its own set of demands: a rollback of US tariffs, clearer rules on technology exports, and an end to what Beijing sees as extraterritorial sanctions. The choice of Seoul as the venue is itself significant. South Korea, a close US ally and China’s largest trading partner, offers neutral ground, though the shadow of the Iran conflict—and its effect on global energy prices—adds urgency to the discussions.

Both leaders met in Busan last October, a meeting that laid the groundwork for this week’s preparatory talks. When Trump and Xi finally sit down in Beijing on Thursday, they will have to address a sprawling agenda that also includes state subsidies, market access barriers, and the lingering friction over technology competition. A White House spokeswoman has confirmed that Trump plans to host Xi for a reciprocal visit later in 2026, suggesting both sides see the relationship as one of managed rivalry rather than outright confrontation.

Ahead of that, however, the Seoul talks must deliver enough common ground to prevent the summit from degenerating into mutual recrimination.