US President Donald Trump and his Chinese counterpart Xi Jinping are set to meet today in Busan on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, which is a high-stakes encounter unfolding amid escalating trade frictions and global economic uncertainty.
This is the first meeting between the two leaders in six years.
A Meeting Years In The Making
The last time the two leaders met face-to-face was during Trump’s first term.
Their renewed engagement, according to US officials, aims to rebuild a fragile trade truce that has frayed in recent months. Both sides are entering talks wary but cautiously hopeful, with Washington signalling that it wants a “substantial framework” to stabilise relations.
US Treasury Secretary Scott Bessent said negotiators have been working to delay China’s planned curbs on rare-earth mineral exports, a move that could have rattled industries worldwide. In return, Beijing is expected to revive purchases of US soybeans, a symbolic gesture of goodwill toward American farmers.
Trade War Resurfaces
The long-dormant trade war reignited earlier this month after Beijing proposed sweeping restrictions on rare-earth exports, critical for high-tech products and defence applications. Trump retaliated by threatening 100% tariffs on Chinese exports and potential limits on goods made with US software destined for China – actions that economists warned could upend global supply chains.
Despite the harsh rhetoric, Trump has expressed optimism about a deal, saying he hopes to lower tariffs if Beijing agrees to curb precursor chemicals used to make fentanyl, the synthetic opioid driving America’s overdose crisis.
New Bargains On The Horizon
Beyond tariffs and trade, the Trump-Xi talks may also touch on TikTok, the Chinese-owned app facing a US ban unless its parent company divests its American operations. Trump hinted that a final deal on the matter could be signed directly with Xi.
The White House has indicated that this week’s meeting could be the first of several in the coming year, potentially involving reciprocal visits, marking a sign that both sides anticipate a drawn-out negotiation process rather than a one-off summit.
Deals Nearing Expiry
Many of the previous tariff and rare-earth agreements between Washington and Beijing are set to expire on November 10, adding urgency to this round of diplomacy. Those deals had earlier reduced retaliatory tariffs to around 55% on the US side and 10% on China’s, while resuming the flow of rare-earth magnets essential for industries from automobiles to fighter jets.
Beijing, for its part, is seeking tariff rollbacks, relief on export controls for US technology, and the removal of new port fees imposed on Chinese vessels.
Asia Trip And Regional Undercurrents
The Busan meeting caps Trump’s five-day tour of Asia, during which he signed pacts with Japan and Southeast Asian nations aimed at diversifying rare-earth supply chains and reducing dependence on China.
But the broader backdrop remains fraught. Tensions over Taiwan loom large, with Chinese state media recently showcasing H-6K bomber drills near the island. The US has reiterated its commitment to Taiwan’s defence, with Secretary of State Marco Rubio assuring that Washington will not trade away its security interests in pursuit of an economic deal.
Beijing struck a conciliatory note ahead of the meeting. China is willing to work together for “positive results”, foreign ministry spokesperson Guo Jiakun said on Wednesday.
