U.S. President Donald Trump met Chinese leader Xi Jinping on Thursday in the southern port city of Busan, expressing optimism about securing a truce in the long-running U.S.-China trade war as the two leaders held their first face-to-face talks since 2019.
The meeting, held at a South Korean air base on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, capped Trump’s five-day swing through Asia that included trade deals with Japan, South Korea and Southeast Asian nations.
“We are going to have a very successful meeting, I have no doubt. But he is a very tough negotiator,” Trump told reporters before shaking hands with Xi, who remained stoic. Trump said a trade deal could be signed later in the day.
Xi, speaking through a translator, called occasional friction between the two largest economies “normal” but said both sides had reached a “fundamental consensus” on key concerns. “I am willing to continue working with President Trump to lay a solid foundation for China-U.S. relations,” he said.
Global markets rallied on optimism that the talks could ease trade tensions. China’s yuan rose to a near one-year high against the U.S. dollar, while stock markets from Wall Street to Tokyo hit record levels.
The meeting follows reports that negotiators in Kuala Lumpur reached a preliminary understanding on Sunday. Yet analysts cautioned that any détente could prove fragile amid intensifying competition over technology, trade, and security.
The latest flare-up came after Beijing proposed sweeping curbs on exports of rare-earth minerals, critical for high-tech manufacturing, prompting Trump to threaten 100% tariffs on Chinese goods and restrictions on exports to China using U.S. software.
U.S. Treasury Secretary Scott Bessent said Beijing is expected to delay the rare-earth restrictions for a year and resume large-scale U.S. soybean purchases as part of a “substantial framework” to be finalized by the two leaders. China made its first soybean purchases in months earlier this week.
Trump has linked tariff reductions to China’s willingness to curb exports of precursor chemicals used to make fentanyl, a synthetic opioid blamed for tens of thousands of U.S. overdose deaths annually. He also hinted that a separate agreement with Xi could resolve the fate of TikTok, which faces a U.S. ban unless its Chinese owners divest.
The current trade arrangements, which slashed mutual tariffs and resumed rare-earth shipments, are set to expire on November 10. Beijing is pushing for the removal of tariffs tied to fentanyl, easing of export controls on sensitive U.S. technology, and a rollback of new port fees targeting Chinese shipping.
Trump’s Asian tour has also highlighted growing security concerns, particularly over Taiwan, the self-governing island China claims as its own. Chinese state media recently reported bomber drills near Taiwan, while Washington reaffirmed its commitment to help the island defend itself.
U.S. Secretary of State Marco Rubio said Taiwan “should not be worried” that Washington would trade away its interests, emphasizing that U.S. law mandates continued defense support.
The Busan talks are expected to set the stage for further summits between Trump and Xi next year, signaling both nations’ intent to stabilize relations after years of escalating confrontation.
Source: Reuters
Written By Rodney Mbua
