US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, offering cautious hope that the world’s two largest economies might reduce long-standing tensions. Trump described the talks in South Korea as “amazing,” while Beijing said both sides had agreed to address “major trade issues.” Relations have been tense since Trump imposed heavy tariffs on Chinese imports, prompting swift retaliation. A short-lived truce in May failed to resolve deeper disagreements.
While the meeting produced no formal trade deal, both leaders hinted at progress. Negotiators have spent months attempting to bridge differences over trade and technology. Trade agreements typically take years to finalize, but Trump’s aggressive tariff strategy forced rapid responses from other nations. Many affected countries are in Asia, where Trump has spent the past week pursuing economic leverage.
China lifts rare earth restrictions and restarts US farm purchases
China agreed to remove export limits on rare earth minerals, essential for smartphones, electric vehicles, and defense systems. The move marked a symbolic win for Trump. Speaking aboard Air Force One, he said China would immediately begin buying “tremendous amounts of soybeans and other farm products.” Retaliatory tariffs had nearly halted US soybean imports, affecting American farmers — a key segment of Trump’s political support.
US Treasury Secretary Scott Bessent said China would purchase 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, Canada, and Mexico for.
Sean Stein, president of the US-China Business Council, described progress on rare earths and tariffs as the most significant outcome of the talks. He said it gave businesses stability to navigate long-standing trade challenges. Yet many tariffs remain, leaving US importers paying more than 40 percent in taxes on Chinese goods.
For Beijing, the meeting also created new diplomatic openings. Trump said Xi could soon meet Jensen Huang, CEO of US chip maker Nvidia, central to the ongoing AI chip dispute. China seeks access to advanced processors, while Washington limits exports over security concerns. Xi also invited Trump to visit China in April, signaling warmer relations. However, there was no breakthrough on TikTok, whose US operations remain under dispute.
Xi maintains composure as Trump seeks momentum
The meeting highlighted the contrast between the leaders. Xi remained calm and precise, sticking to prepared statements. China entered the talks from a strong position, having diversified trade partners and reduced reliance on the US. Afterward, Xi said both countries would work on outcomes that act as a “reassuring pill” for their economies.
Trump appeared more tense than during earlier stops on his Asia tour. Gone were the grand palaces and ceremonial parades. The two met in a guarded airport building surrounded by police and media. Despite the low-key setting, the 80-minute discussion became the defining moment of Trump’s visit.
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 cooperation. He described the outcome as “a good start” toward stabilizing one of the world’s most vital yet fragile economic relationships.
