‘Trade teams have reached basic consensus’: Xi says in South Korea talks with Trump

Trump said he “could sign trade deal today” and that the leaders “have already agreed to a lot of things,” according to Reuters. Calling Xi “a very tough negotiator,” Trump added he expected “a very successful meeting.”

‘Normal to have friction’

As they sat down with their delegations, Xi told Trump it was “normal for the two leading economies of the world to have frictions now and then.” He added, “Given our different national conditions, we do not always see eye to eye,” but reaffirmed his willingness to “continue working with President Trump to lay a solid foundation for China–US relations,” reported Reuters.

The Busan meeting followed a renewed round of economic tensions this month after Beijing proposed expanding curbs on exports of rare-earth minerals critical to high-tech industries, a sector China dominates. Trump had vowed to retaliate with additional 100 per cent tariffs on Chinese exports and potential new restrictions on goods made with US software.

US Treasury Secretary Scott Bessent told Reuters that Washington expects Beijing to delay the rare-earth export controls for a year and to resume purchases of American soybeans as part of a “substantial framework” deal. China bought its first cargo of US soybeans in several months earlier this week, Reuters reported.

Also Read: Donald Trump orders nuclear weapons programme ramp-up with immediate testing: ‘China will be even in 5 years’

Trump also said he plans to reduce tariffs on Chinese goods in exchange for Beijing’s cooperation in curbing the flow of precursor chemicals used to make fentanyl, a synthetic opioid behind a major overdose crisis in the US. He added that he might finalise a deal with Xi on TikTok, the social-media app facing a potential US ban unless its Chinese owners divest their American operations.

Previous trade arrangements that had cut retaliatory tariffs to about 55 per cent on the US side and 10 per cent on the Chinese side, and resumed shipments of rare-earth magnets from China, are due to expire on November 10, Reuters reported.

Broader tensions 

While both sides struck a cordial tone, analysts said deep strategic rivalry remains. “Both sides are managing volatility, calibrating just enough cooperation to avert crisis while the deeper rivalry endures,” said Craig Singleton of the Foundation for Defense of Democracies, as quoted by AP.

Tensions over Taiwan also hang over the talks. Chinese state media said H-6K bombers recently conducted “confrontation drills” near the island, while US Secretary of State Marco Rubio said Taiwan should not be concerned about the summit, reaffirming Washington’s legal obligation to help the island defend itself.

Markets reacted positively to the meeting, with China’s yuan rising to a near one-year high against the dollar and global stocks posting gains amid hopes of a thaw in trade relations.

(With inputs from agencies)