US Treasury Secretary Scott Bessent affirmed on Wednesday that Washington does not intend to escalate a trade dispute with China.

He highlighted President Donald Trump's willingness to engage in a meeting with Chinese President Xi Jinping in South Korea, scheduled for later this month.

Bessent stated during a CNBC event that officials from both nations are engaged in daily communication to arrange the encounter, underscoring that the US does not wish to disengage from what remains the world's second-largest economy.

Bessent attributed the limited escalation of the trade conflict between the two countries to the trust established between Trump and Xi.

This development comes after a period where tensions appeared to be nearing an all-out trade war following China's announcement on Thursday of a significant expansion of its rare earths export controls.

In response, Trump threatened to impose tariffs reaching triple-digit levels on Chinese goods, causing a considerable stir in both financial markets and US-China relations.

Bessent and other officials have been actively seeking to mend ties through various interviews conducted this week.

He dismissed China's assertion that the latest trade measures were a reaction to actions taken by the US, stating that Beijing had these intentions from the outset.

Bessent also addressed allegations that a lower-level Chinese trade official had threatened to disrupt the global system if the US proceeded with port fees on Chinese ships in August.

According to Bessent, this individual, described as 'slightly unhinged,' claimed that China would unleash chaos globally if these measures were implemented.

These statements underscore the volatile nature of the ongoing trade negotiations and the high stakes involved in maintaining a delicate balance between the two economic superpowers.