* Talks in Paris seek to tee up proposals for Trump, Xi
to consider in Beijing
* China open to additional purchases of U.S. agriculture
goods -sources familiar with talks
* U.S., China said to explore new mechanisms for managing
trade, investments
* Trump tells FT he may delay meeting with Xi over Hormuz
strait closure
By David Lawder
PARIS, March 16 (Reuters) - Top U.S. and Chinese
economic officials were due to conclude talks in Paris on
Monday, with potential areas of agreement in agriculture,
critical minerals and managed trade that could be taken up by
U.S. President Donald Trump and Chinese President Xi Jinping in
Beijing, sources familiar with the discussions said.
The sources told Reuters that the "remarkably stable" talks
led by U.S. Treasury Secretary Scott Bessent and Chinese Vice
Premier He Lifeng would set in motion possible "deliverables"
for Trump's expected trip to China at the end of March to meet
with Xi.
But they added that the leaders would have the final say on
the proposals.
Trump, however, told the Financial Times in an interview
published on Sunday that he could also delay his summit with Xi
later this month as he presses Beijing to help unblock the
crucial Strait of Hormuz closed by Iran.
"We may delay," he said of the trip.
The U.S. and Chinese delegations met for more than six hours
on Sunday at the Paris headquarters of the Organisation for
Economic Cooperation and Development, a club of mostly wealthy
democracies that does not count China as a member.
During those discussions, the Chinese side showed openness
to potential additional purchases of U.S. agricultural goods
including poultry, beef and non-soybean row crops, one of the
sources said, adding that China was still committed to buying 25
million metric tons of American soybeans for each of the next
three years under the Trump-Xi October 2025 trade truce.
Spokespersons for the U.S. Treasury and the U.S. Trade
Representative's office declined to characterize the
discussions, while Chinese officials left the talks on Sunday
without speaking to reporters.
"Meaningful" progress in Sino-U.S. economic cooperation
could restore confidence to an increasingly fragile global
economy, China's state-run Xinhua news agency said in a
commentary on Sunday.
The Paris talks follow several meetings to ease tensions
last year between Bessent, He, U.S. Trade Representative
Jamieson Greer and Chinese chief trade negotiator Li Chenggang.
MANAGED TRADE MECHANISM
The two sides discussed the establishment of new formal
mechanisms to help manage trade and investment between the
world's two largest economies that may be considered by Trump
and Xi in Beijing, the sources said. Technical talks on the
proposed U.S.-China "Board of Trade" and "Board of Investment"
were expected on Monday.
One of the sources said that the Board of Trade was the more
developed of the two proposals, and would be aimed at finding
products and sectors where the U.S. and China could grow trade
in a balanced way without compromising each other's national
security or critical supply chains.
The Board of Investment would not set broad investment
policies but would address "discrete investment issues" that may
arise between the countries, the source said.
CRITICAL MINERALS, ENERGY
The sources also said U.S. officials discussed the flow of
Chinese-produced critical minerals to U.S. companies and raised
concerns about the U.S. aerospace industry's lack of access to
yttrium from China, which is used in jet engine turbines, among
other applications.
One of the sources said the two sides "found some ways to
loosen up" more challenging areas in critical minerals, but did
not provide specifics.
Before the talks, Greer had told CNBC on Friday that the
U.S. wanted "to make sure that we continue to get the rare
earths we need for our manufacturing base, that they keep buying
the kinds of things they should be buying from us, and that the
leaders have a chance to get together and make sure that the
relationship is going the way we want it to go."
Greer and Bessent also emphasized in the talks the U.S.
desire for China to increase purchases of Boeing ( BA )
jetliners and U.S. coal, oil and natural gas, which could be
further discussed on Monday, the sources said.
But with little time to prepare and Washington's attention
focused on the U.S.-Israeli war on Iran, prospects for such
major trade breakthroughs were limited, in Paris or at the
Beijing summit, trade analysts said.
"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 who now
heads the Asia Society's Washington policy center.
These meetings include a potential visit to Washington for
Xi, a China-hosted APEC summit in November and a U.S.-hosted G20
summit in December.