US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, sparking cautious optimism that the world’s two largest economies could reduce long-standing tensions. Trump called the talks in South Korea “amazing,” while Beijing said both sides had agreed to tackle “major trade issues.” Relations have been tense since Trump imposed heavy tariffs on Chinese imports, prompting strong retaliation. A short-lived truce in May failed to resolve deeper disputes.
While no formal trade deal was reached, both leaders indicated progress. Negotiators have spent months working to resolve differences over trade and technology. Trade agreements normally take years, but Trump’s aggressive tariffs forced faster responses. Many affected countries are in Asia, where Trump has spent the past week advancing his economic agenda.
China lifts rare earth restrictions and revives US farm purchases
China agreed to remove export limits on rare earth minerals, vital 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 resume buying “tremendous amounts of soybeans and other farm products.” Retaliatory tariffs from Beijing had nearly blocked these imports, hurting American farmers — a key part of Trump’s political base.
US Treasury Secretary Scott Bessent confirmed that 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. Washington also 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 the progress on rare earths and tariffs represented the most significant outcome of the talks. He noted it gave businesses stability to address long-standing trade challenges. Yet many tariffs remain, leaving US importers paying over 40 percent in taxes on Chinese goods.
Beijing also gained diplomatic openings. Trump said Xi could soon meet Jensen Huang, CEO of US chipmaker Nvidia, central to the AI chip dispute. China seeks 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 under scrutiny.
Xi remains composed while Trump seeks results
The meeting highlighted the contrast between the leaders. Xi stayed calm and deliberate, 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 focus 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 leaders met inside a guarded airport building surrounded by police and media. Despite the understated setting, the 80-minute discussion became the defining 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 built “a framework and structure” for future cooperation. He described the outcome as “a good start” toward stabilizing one of the world’s most important yet fragile economic relationships.
