US Treasury Secretary Scott Bessent said on Friday that he would likely meet Vice Premier He Lifeng next week to prepare for upcoming high-stakes talks between the presidents of the world's two biggest economies.

Bessent's high-level meeting comes as trade tensions flare between the two sides over Beijing's announcement of tighter export controls on the critical rare earth industry.

Washington has been working to rally allies to respond to Beijing's new curbs, with the Group of Seven finance ministers agreeing this week to coordinate their next moves.

The rare earth controls had sparked a fiery response from US President Donald Trump, who threatened to impose an additional 100-percent tariff on imports from China and to cancel expected talks with President Xi Jinping in South Korea.

But Trump said in an excerpt of an interview with Fox News, released on Friday, that he would meet Xi after all at the Asia-Pacific Economic Cooperation (Apec) summit.

Bessent told reporters at the White House on Friday that he believed "things have de-escalated" between both countries.

He added that he would speak to He later before both of them "meet in Malaysia, probably a week from tomorrow, to prepare for the two presidents to meet."

International Monetary Fund chief Kristalina Georgieva also expressed hope on Friday for an agreement between the countries to cool tensions. (AFP)