After a six-year hiatus, US President Donald Trump and Chinese President Xi Jinping are set to meet on Thursday in Busan, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. The high-stakes encounter comes amid rising trade frictions, tariff threats, and global economic uncertainty.
A Meeting Years in the Making
The last face-to-face meeting between Trump and Xi took place during Trump’s first term. US officials said this renewed engagement aims to rebuild a fragile trade truce that has eroded in recent months.
According to US Treasury Secretary Scott Bessent, negotiators are working to delay China’s planned curbs on rare-earth exports, a move that could destabilize industries worldwide. In exchange, Beijing may resume large-scale purchases of US soybeans, signaling goodwill toward American farmers.
Trade War Resurfaces
Tensions reignited earlier this month when Beijing announced sweeping restrictions on rare-earth exports — minerals essential for electronics and defense. In response, Trump threatened 100% tariffs on Chinese exports and limits on goods using US software bound for China, prompting concerns over global supply chain disruptions.
Despite the fiery rhetoric, Trump has sounded cautiously optimistic, saying he hopes to lower tariffs if Beijing curbs exports of precursor chemicals used in fentanyl production, a key issue in the US opioid crisis.
New Bargains on the Horizon
The Busan meeting could also address TikTok’s future in the US, as the Chinese-owned platform faces a potential ban unless divested from its parent company. Trump hinted that a direct agreement with Xi could resolve the standoff.
The White House said the summit could be the first of several meetings in 2026, suggesting a longer-term diplomatic roadmap rather than a one-off negotiation.
Deals Nearing Expiry
Several tariff and rare-earth trade agreements between the two nations are set to expire on November 10, adding urgency to the talks. These pacts had earlier reduced retaliatory tariffs and resumed the flow of critical rare-earth magnets for industries such as EVs and defense manufacturing.
Beijing is expected to push for tariff rollbacks, tech export relief, and the removal of new port fees imposed on Chinese vessels.
Asia Tour and Regional Undercurrents
Trump’s Busan stop concludes his five-day Asia tour, during which he signed rare-earth diversification pacts with Japan and Southeast Asian nations to reduce dependence on China.
However, the Taiwan issue continues to shadow US-China relations. Chinese state media recently showcased H-6K bomber drills near Taiwan, while US Secretary of State Marco Rubio reaffirmed Washington’s commitment to Taiwan’s defense, emphasizing that America “will not trade away security for economics.”
China, meanwhile, struck a more conciliatory tone. “We are willing to work together for positive results,” said Foreign Ministry spokesperson Guo Jiakun, signaling cautious optimism ahead of the summit.