BUSAN, SOUTH KOREA – In a highly anticipated meeting aimed at de-escalating global trade tensions, US President Donald Trump and Chinese counterpart President Xi Jinping met on the sidelines of the APEC forum in Busan, South Korea, on Oct. 30. It was their first in-person meeting since 2019 and resulted in a one-year trade truce that temporarily eased tensions between the world’s two largest economies, though fundamental issues remain unresolved.
Trump said after the nearly two-hour meeting that it was “friendly” and that he and the Chinese leader “agreed to almost everything.” Rating the meeting a “12 out of 10,” Trump announced significant concessions:
1. Tariff Reduction: The US will cut tariffs on Chinese goods from 57% to 47%, citing China’s commitment to curb the flow of fentanyl into the US.
2. Rare Earths: The dispute over rare earth minerals, which are critical for high-tech manufacturing, has been “settled” for one year, ensuring the continued supply of Chinese exports.
3. Soybean Purchases: China agreed to immediately resume large-scale purchases of American soybeans and other farm goods.
The US President confirmed that he would visit China in April, with Xi expected to travel to the United States sometime after that. Despite the optimism from the US side, China’s readout maintained a cooler tone, with President Xi stating that the two nations should not get “caught in a vicious cycle of mutual retaliation,” urging a focus on cooperation over confrontation. The one-year truce is widely seen as a necessary ceasefire, buying time for negotiators to work towards a more comprehensive solution.