Busan: The long-awaited meeting between US President Donald Trump and Chinese President Xi Jinping concluded on Thursday in South Korea’s Busan, lasting approximately one hour and 40 minutes. Following the summit, Trump announced that the two countries had reached a one-year agreement on rare earths and critical minerals.
Fentanyl Tariffs Reduced
In addition to the rare earths deal, Trump declared that tariffs on fentanyl-related products imported from China would be halved to 10 percent. Speaking to reporters aboard Air Force One while departing South Korea, Trump described his meeting with Xi as 'excellent,' emphasizing that 'many important decisions' had been made.
Rare Earths Agreement Finalised
On the rare earths issue, Trump explained that the agreement would last one year and would be renewed annually. He also noted that China’s export tariffs were reduced from 57 percent to 47 percent. This agreement marks a major breakthrough in US-China trade negotiations, addressing one of the most critical strategic sectors.
Future Visits Planned
Trump revealed that he would visit China in April, after which Xi Jinping would make a visit to the United States, though specific dates have not been confirmed. This summit was the first direct meeting between the two leaders in six years.
Warm Atmosphere Signals Cooperation
Ahead of the meeting, both leaders emphasized goodwill. Trump referred to Xi as an 'old friend' and highlighted the 'very good relationship' between them. Xi said that China’s economic ambitions were not at odds with Trump’s 'Make America Great Again' vision, signaling a potential easing of tensions.
Addressing Rising Tensions
Economic tensions between the US and China had been escalating this year, exacerbated by Beijing’s export controls and Washington’s warnings on software exports. In recent weeks, the two countries had discussed several potential agreements, including controls on fentanyl supply to the US, divestment of ByteDance (TikTok’s parent company), tariff and tech restrictions, and rare earth collaboration.
Signs of Thaw in Relations
Caution remained on Beijing’s side, but a signal of easing emerged when China purchased its first shipment of US soybeans in months. This summit has raised hopes of improved US-China relations at a time when the global economy faces mounting technological and strategic competition pressures.
