Trump-Xi Meeting Progress on Trade

Trump, Xi Meet After Six Years, Make Progress on Trade Tensions

U.S. President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, for the first time in six years. Despite no major breakthroughs, they made progress on several trade issues, easing tensions temporarily.

Trump, seeking to bolster his domestic standing amid a government shutdown, adopted a more conciliatory tone. He accepted Xi's invitation to visit China next spring, with relations remaining volatile until then.

The meeting yielded several agreements. The U.S. withdrew a measure placing certain Chinese companies on an export restriction blacklist. China agreed to suspend its planned export controls on rare earth minerals for one year and resume purchases of U.S. soybeans. Both sides also committed to cracking down harder on fentanyl trade and halved tariffs on the drug.

However, no progress was made on technology export controls, such as those affecting Nvidia's chips. Major structural conflicts and sensitive topics like Taiwan were not discussed. U.S. duties on most Chinese goods still average 47 percent, burdening American consumers over time. Disputes over territorial claims in the South China Sea and U.S. security guarantees for Taiwan continue to strain relations.

Trump and Xi established a framework for resolving trade disputes and focusing on long-term cooperation. Despite progress, significant challenges remain. Trump aims for a comprehensive trade deal with China similar to one nearly finalized in his first term. The situation will likely remain volatile until then.