The high-stakes encounter between US President Donald Trump and Chinese President Xi Jinping on Thursday will be eagerly monitored for indications of a break in the two nations’ intensifying trade battle characterized by tit-for-tat tariffs.
Shortly after Xi arrived in the nation for a three-day state visit, the two leaders met for the first time since 2019 at Naraemaru, a welcome hall inside an Air Force base in the southeastern city of Busan.
After leaving the neighboring city of Gyeongju, the site of this week’s Asia-Pacific Economic Cooperation (APEC) meetings, earlier in the day, Trump arrived at the location ahead of schedule.
Trump declared, “We’re going to have a very successful meeting,” as the two leaders posed for pictures prior to their discussions. However, he is an extremely skilled negotiator. “That’s not good,” he joked.
Trump said that a trade agreement could be signed by both parties.
At the Trump-Xi summit, there is a chance that China could postpone tightening export regulations on rare earths for a year in exchange for the United States abandoning its plans to impose an additional 100% tariff on Chinese imports beginning on November 1.
Officials from both sides allegedly came to a framework agreement on such a pact over the weekend.
There are additional trade issues that need to be resolved between the two biggest economies in the world. This year, China stopped purchasing US soybeans, harming American farmers who are a major source of support for Trump. Tariffs have been used independently by the US to put pressure on China to halt the flow of fentanyl.
In exchange for Beijing’s pledge to reduce exports of chemicals that can be used to create fentanyl, Trump hinted on Wednesday that he would reduce the existing 20% tariffs tied to fentanyl.
Due to the two superpowers’ trade battle, US tariffs on Chinese commodities increased to 145% in April, while Chinese levies on US goods increased to 125%.
The duties have now been reduced to 50% on Chinese imports and 10% on US goods as a result of a ceasefire achieved at high-level trade negotiations in May.
Trump has been upbeat about his impending summit with Xi on several occasions.
“Very much looking forward to my meeting with President Xi of China,” he posted on Truth Social on Thursday.
“It will take place in a few hours!”
Although few analysts anticipate that the conference would put an end to the two nations’ trade conflict, any deal that lessens the uncertainty around their punitive actions could be a first step.
As Beijing seems to demonstrate its military might on the continent, security concerns also play a significant role in the US-China rivalry.
According to Yonhap news agency, the main ones include Beijing’s territorial claims in the South China Sea, China-Taiwan tensions, and North Korea’s developing nuclear weapons development.
On Wednesday, Trump hinted that Taiwan might not be a major topic of discussion with Xi.
“I don’t know that we’ll even speak about Taiwan,” he said to reporters on Air Force One.
“I’m not certain. He might wish to inquire about it. There aren’t many questions. Taiwan is Taiwan.
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