US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, raising hopes that the world’s two largest economies could reduce long-standing tensions. Trump described the talks in South Korea as “amazing,” while Beijing said both sides had reached a consensus on tackling “major trade issues.” Relations have been strained since Trump imposed heavy tariffs on Chinese imports, prompting strong retaliation. A short truce in May failed to fully calm the standoff.
While no formal trade deal emerged, both leaders suggested progress. Negotiators have spent months trying to resolve deep differences over trade and technology. Trade agreements usually take years, but Trump’s aggressive tariffs have forced countries to respond quickly. Many of those affected are in Asia, where Trump has spent the past week advancing his economic goals.
China lifts rare earth restrictions and resumes US farm purchases
China agreed to remove export controls on rare earth minerals, crucial for smartphones, electric vehicles, and defense equipment. The move was seen as a clear win for Trump. Speaking aboard Air Force One, he said China would immediately begin buying “tremendous amounts of soybeans and other farm products.” Chinese tariffs had previously halted those imports, hitting American farmers — a key part of Trump’s political base.
US Treasury Secretary Scott Bessent said China would buy 12 million metric tonnes of soybeans this season and commit to at least 25 million tonnes annually for the next three years. Following the meeting, Washington announced plans to ease some tariffs on chemicals linked to fentanyl production, a drug issue Trump has repeatedly blamed China and other nations for.
Sean Stein, president of the US-China Business Council, said progress on rare earths and tariffs represented the most meaningful outcome of the talks. He noted it gave businesses more stability to address long-standing trade issues. Still, most tariffs remain, leaving US importers paying more than 40 percent taxes on Chinese goods.
For Beijing, the talks opened new diplomatic channels. Trump said Xi could soon meet Jensen Huang, head of US chip maker Nvidia, a company central to the AI chip dispute. China wants access to advanced processors, while Washington restricts exports over security concerns. Xi also invited Trump to visit China in April, signaling warmer relations. However, no breakthrough occurred on TikTok, whose US operations remain a point of tension.
Xi stays composed while Trump seeks results
The meeting highlighted a stark contrast in leadership style. Xi remained calm and measured, delivering only prepared statements. China entered the talks from a strong position, having diversified trade partners and reduced dependence on the US. Afterward, Xi said both nations would focus on measures that act as a “reassuring pill” for their economies.
Trump appeared more tense than during earlier stops on his Asia tour. The event lacked the grandeur of previous visits, with no palaces or ceremonial parades. The leaders met inside a guarded airport building surrounded by police and media. Despite the modest setting, the 80-minute discussion became the most important moment of Trump’s trip.
Henry Wang, a former adviser to China’s State Council, said the talks “went very well.” While no trade deal was finalized, he said both leaders had established “a framework and structure” for future progress. He described the outcome as “a good start” toward stabilizing one of the world’s most vital yet fragile economic relationships.
