President Donald Trump and Chinese leader Xi Jinping conducted their first face-to-face meeting in six years at a South Korea venue, generating optimism for reduced tensions between the world’s largest economies.
Trump characterized the discussions as “amazing,” while Chinese officials stated both nations reached consensus on resolving “major trade issues.”
Relations deteriorated after Trump implemented new tariffs on Chinese goods, prompting retaliatory measures from Beijing. The countries agreed to a May truce, though tensions persisted.
Thursday’s discussions produced no formal agreement, though official statements suggest both sides moved closer to a deal whose specifics have been negotiated privately for months.
Trade agreements typically require years to finalize. Countries worldwide have been compelled to address disputes with Trump within months after he imposed comprehensive tariffs on major trading partners.
Several key trading partners are located in Asia, where Trump has spent recent days.
China agreed to suspend export restrictions on rare earth elements, essential for manufacturing products ranging from smartphones to military aircraft. This represents a significant Trump administration achievement from the Xi meeting.
Trump told reporters aboard Air Force One that China also committed to immediately purchasing “tremendous amounts of soybeans and other farm products.” Beijing’s retaliatory tariffs on American soybeans had effectively eliminated US imports, damaging American farmers who constitute an important Trump voting constituency.
Treasury Secretary Scott Bessent later informed business media that China agreed to purchase 12 million metric tonnes of soybeans this season, followed by a minimum 25 million tonnes annually for three years.
Following the meeting, the United States announced it would eliminate portions of tariffs imposed on Beijing regarding fentanyl precursor chemical flows to America. Trump has imposed severe tariffs on China, Canada, and Mexico for their perceived failure controlling that drug’s distribution.
The US-China Business Council president welcomed the tariff and rare earth announcements, calling them the most significant outcomes.
Sean Stein stated: “You could say that this is a truce, that we are now locked in place on tariffs and we don’t have to worry every 90 days where it’s going to roll over.”
Speaking from Beijing, Stein noted this “gives business plenty of time to work on the Chinese and the US administration to make sure that they’re focused on some of the long-standing issues that have troubled the trade relationship between the two countries.”
However, other tariffs on imported goods will apparently remain, meaning Chinese products entering the United States still face over 40% taxation for US importers.
More positively for Beijing, officials will now be able to communicate with Jensen Huang, head of US technology firm Nvidia, according to Trump. Nvidia occupies a central position in both countries’ artificial intelligence chip conflict: China desires advanced chips while the United States seeks to restrict China’s access, citing national security.
Beijing also extended a Trump visit invitation for April, another indication of warming relations.
However, no TikTok breakthrough emerged. The United States has sought to separate the video-sharing application’s US operations from Chinese parent company ByteDance for national security reasons. Beijing stated afterward it would continue working to resolve issues.
The meeting also revealed stark differences between the leaders’ approaches.
Xi remained composed, speaking only prepared remarks. He entered negotiations knowing he held advantages. China had learned from Trump’s first term, leveraging its rare earth monopoly and diversifying trade partnerships to reduce US dependence.
Afterward, he used far more measured language than Trump. Both sides would work on delivering outcomes serving as a “reassuring pill” for both economies, he stated.
Trump was characteristically more spontaneous. However, the US president appeared noticeably more tense than during the rest of his Southeast Asia trip, reflecting Thursday meeting’s high stakes.
The glamor and ceremony displayed since his Malaysia arrival five days earlier was absent.
Gone were the gold-adorned palaces where he was welcomed in Japan on Tuesday. Instead, an airport building behind barbed wire and security checkpoints.
The military bands that welcomed Trump to South Korea on Wednesday were nowhere visible.
Instead, heavy police and media presence provided the only indication something significant was occurring inside.
Despite the quieter public presentation, what transpired inside arguably represented the trip’s most significant hour and 20 minutes.
Henry Wang, a former State Council adviser, stated that Trump and Xi’s talks “went very well.”
While not a trade deal, a “framework and structure has been laid,” he added, calling it “a good start.”
The six-year gap since the previous Trump-Xi meeting reflecting both leaders’ first-term tensions and the intervening Biden administration period, with the extended interval creating uncertainty about whether personal rapport established earlier could be reestablished or whether relationships had permanently deteriorated.
Trump’s “amazing” characterization representing his typical superlative language that often overstates outcomes, though the positive framing suggests he viewed the meeting as political success he can market to domestic audiences regardless of concrete achievements.
Beijing’s “reached a consensus to resolve major trade issues” phrasing employing deliberately vague diplomatic language that signals progress without committing to specific concessions, with the statement providing domestic audiences reassurance while preserving negotiating flexibility.
The tariff-prompted tensions beginning with Trump’s unilateral import taxes disrupting decades of trade liberalization orthodoxy, with the protectionist approach representing sharp departure from post-World War II consensus that open markets benefit all participants.
The May truce followed by persistent tensions demonstrating that temporary agreements without addressing underlying disputes provide only brief respite, with the pattern suggesting either side can restart hostilities whenever perceived advantages emerge from renewed confrontation.
The absence of formal agreement despite “closer to a deal” language indicating substantive gaps remain on contentious issues including intellectual property protections, market access, and technology transfers that previous negotiations failed to resolve despite years of discussions.
The years-long typical trade negotiation timeline contrasting with Trump’s demand for rapid resolution within months reflects his business background impatience applied to international diplomacy, with the compressed timeframe potentially producing superficial agreements addressing symptoms rather than structural problems.
The comprehensive tariffs on “top trade partners” including allies like Japan and South Korea alongside adversaries like China representing Trump’s transactional approach treating all relationships as zero-sum competitions where American interests require aggressive bilateral pressure.
The rare earth export control suspension representing major Chinese concession given that rare earth element monopoly provides Beijing enormous leverage over global technology supply chains, with the reversal suggesting Xi concluded maintaining restrictions risked greater retaliation damage than the strategic advantage provided.
The rare earth importance for smartphones and fighter jets spanning commercial and military applications demonstrates modern technology’s dependence on specialized materials concentrated in few geographic locations, with supply chain vulnerabilities creating national security concerns transcending economic considerations.
Trump’s soybean purchase announcement appealing to Midwestern agricultural constituencies devastated by Chinese retaliatory tariffs, with the farm crisis threatening Republican electoral prospects in states like Iowa and Nebraska that Trump must win for reelection.
The 12 million metric tonnes immediate purchase followed by 25 million tonnes annually for three years providing specific quantitative commitments unlike vague promises, with Treasury Secretary Bessent’s confirmation lending credibility to Trump’s characteristically exaggerated claims.
The partial fentanyl-related tariff removal indicating Trump recognizes his aggressive approach damaged American economic interests without achieving drug interdiction goals, with the tactical retreat preserving broader tariff framework while addressing criticism about counterproductive policies.
The over 40% remaining tariff rate on Chinese imports representing punishing taxation far exceeding historical norms, with the sustained high duties continuing to raise consumer prices for Americans while potentially protecting domestic industries from competition.
The Nvidia’s Jensen Huang communication authorization revealing technology’s central role in US-China competition, with artificial intelligence chip access representing the 21st century equivalent of Cold War nuclear technology where technological leadership determines geopolitical dominance.
The April China visit invitation offering Trump prestigious state reception that appeals to his ego while providing Xi opportunity to influence American policy through personal diplomacy and grand ceremonial displays that previous authoritarian leaders have successfully used to manipulate Trump.
The TikTok absence from discussions suggesting the video platform’s national security concerns transcend trade negotiations, with the issue potentially involving intelligence community equities that prevent presidential discretion to resolve through bilateral dealmaking.
