Journalism of Courage
The United States and China are heading into a pivotal moment in their relationship, as Presidents Donald Trump and Xi Jinping prepare to meet Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Seoul.
The meeting marks the first in-person encounter between the two leaders since Trump’s return to office. The previous meeting between Trump and Xi was in 2019 on the sidelines of the Group of 20 summit in Osaka, Japan.
At the heart of the talks is a tentative framework agreement aimed at easing tensions in the US–China trade war that has rattled global markets since early 2025.
Officials from both countries as report by Deutsche Welle, have confirmed that negotiators reached a preliminary understanding involving:
A potential reduction in US tariffs on Chinese goods.
Beijing’s temporary suspension of export curbs on rare earth minerals, essential for manufacturing electronics, EVs, and defence systems.
A commitment from China to purchase large volumes of US soybeans, a politically significant concession for Trump’s domestic base.
US Treasury Secretary Scott Bessent as per DW, told American media the agreement includes a “deferral” of rare earth export restrictions and a “substantial” Chinese purchase of US agricultural goods. He also said Trump’s threat of 100% tariffs on Chinese imports is now “effectively off the table.”
Trump and Xi are returning to the negotiating table after months of retaliatory measures: the US imposing steep tariffs on Chinese goods, and China threatening to restrict rare earth exports, a resource where it dominates global production.
The meeting also carries political weight. Trump, who has made “America First” trade policy central to his second term, is under pressure to deliver a deal that benefits US workers without appearing to concede to Beijing. For Xi, the talks are a chance to stabilise China’s economy amid slowing growth and intensifying Western scrutiny of its export practices.
Tensions flared earlier this month when Trump announced 100% tariffs on all Chinese imports, responding to Beijing’s decision to curb exports of rare earth elements. The move shocked global markets and sent investors scrambling.
China mines roughly 70% of the world’s rare earths and controls more than 90% of refining capacity, making it a critical player in the production of chips, batteries, and advanced weaponry. Any disruption to Chinese exports has ripple effects across industries from electric vehicles to smartphones.
As per DW, Beijing retaliated by halting purchases of US soybeans, hurting American farmers — a repeat of tactics used during Trump’s first trade war in 2018–2019.
After arriving in South Korea on Wednesday, Trump struck an uncharacteristically optimistic note, saying he expected that “a lot of problems” would be solved in his discussions with Xi.
Global markets responded positively to signs of easing tensions. Analysts, however, warn that while a short-term truce may be within reach, the deeper rivalry between Washington and Beijing remains unresolved.
“Everyone knows the competition is ongoing, but they don’t want it to suddenly trigger an economic collapse,” DW quoted Dennis Weng, associate professor of political science at Sam Houston State University.
“I’m skeptical that any grand bargain will be reached,” Bonnie Glaser of the German Marshall Fund said as per DW. “There is virtually no overlap in American and Chinese interests.”
Beyond trade, Trump and Xi are expected to address geopolitical tensions over Taiwan — the self-ruled democracy that China claims as its territory.
Xi has reportedly pressed Washington to issue a formal statement opposing Taiwan independence, which would be a significant diplomatic victory for Beijing. But Secretary of State Marco Rubio has insisted that the administration “will not abandon Taiwan” as part of trade negotiations.
Taiwan’s Foreign Minister Lin Chia-lung said Tuesday he remains confident the US will not compromise its support for the island.
Still, the longstanding American policy of “strategic ambiguity” — maintaining support for Taiwan’s self-defence while not explicitly endorsing its independence — gives Washington flexibility to adjust its stance.
Trump will depart Seoul after the Xi meeting, skipping much of the APEC agenda. He told business leaders that he believes a deal is coming — and that it will be “a good deal for both.”
He has also hinted at a potential visit to China in early 2026, though no date has been set.
Analysts expect a period of relative calm following the summit, as both sides prepare for deeper negotiations and signal stability to global markets.
