US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, signaling cautious hope that the world’s two largest economies might ease long-standing tensions. Trump described the talks in South Korea as “amazing,” while Beijing said both sides had agreed to tackle “major trade issues.” Relations have been tense since Trump imposed heavy tariffs on Chinese goods, prompting swift retaliation. A brief truce in May failed to resolve deeper disputes.
Although no formal trade deal emerged, both leaders hinted at progress. Negotiators have spent months working to settle long-standing conflicts over trade and technology. Trade agreements usually take years, but Trump’s aggressive tariffs have forced other nations to respond quickly. Many affected partners are in Asia, where Trump has spent the past week advancing his economic agenda.
China lifts rare earth restrictions and resumes US farm imports
China agreed to remove export limits on rare earth minerals, crucial for smartphones, electric vehicles, and defense technology. The move marked a symbolic victory for Trump. Speaking aboard Air Force One, he said China would immediately resume purchasing “tremendous amounts of soybeans and other farm products.” Retaliatory tariffs from Beijing had previously blocked those imports, harming US farmers — a core part of Trump’s political base.
US Treasury Secretary Scott Bessent said China would buy 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 it would ease certain 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, said the progress on rare earths and tariffs represented the most significant result of the talks. He noted it gave businesses stability to address long-standing trade issues. Yet most tariffs remain, leaving US importers paying over 40 percent in taxes on Chinese goods.
Beijing also gained new diplomatic openings. Trump said Xi could soon meet Jensen Huang, CEO of US chipmaker Nvidia, central to the AI chip dispute. China seeks advanced processors, while Washington restricts exports for security reasons. 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 stays composed while Trump pushes for results
The meeting highlighted the stark contrast between the two leaders. Xi remained 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 nations would work on outcomes that serve 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 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 sides 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.
