US President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, on Thursday, in a crucial effort to ease months of economic tensions between the world’s two largest economies.
Welcoming the Chinese leader at the start of their bilateral talks, Trump struck a cordial tone, saying, “An honour to have you with us,” signalling optimism for progress as the two sides attempt to mend fractured trade relations.
The meeting comes a day after Trump delivered a keynote address at a business luncheon on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. In his remarks, he expressed confidence that a “great deal” with China was within reach — one that would be “good for both countries” and “something very exciting for everybody.”
“That’s really a great result. That’s better than fighting and going through all sorts of problems. No reason for it,” he added.
Thursday’s meeting marks the first in-person interaction between Trump and Xi since the US President returned to the White House, and their first encounter since the 2019 G20 summit in Osaka, Japan.
The discussions come at a sensitive time, with Washington and Beijing seeking to stabilise relations strained by tariffs, trade barriers, and economic countermeasures. Trump’s renewed tariff regime and China’s restrictions on rare earth exports have further underscored the need for constructive engagement, with trade and regional security high on the agenda.
Speaking aboard Air Force One a day earlier, Trump said he expected the agreement to address “a lot of problems,” including reducing tariffs on Chinese goods in exchange for Beijing curbing the production of fentanyl — the synthetic opioid at the centre of a US public health crisis.
The US currently imposes a 20 per cent tariff on Chinese imports, citing Beijing’s alleged inaction in preventing the flow of chemicals used to manufacture fentanyl.
According to US officials, the emerging trade pact may involve delaying China’s planned export controls on rare earth minerals and easing additional American tariffs, while Beijing would pledge to increase imports of US agricultural goods.
China’s Foreign Ministry confirmed the high-level meeting on Wednesday, saying the two leaders would hold “in-depth communication on strategic, long-term issues related to China-US relations and major issues of common concern,” spokesperson Guo Jiakun told reporters.
The Busan meeting precedes the 32nd APEC Economic Leaders’ Summit in Gyeongju, set for October 31 to November 1, where 21 Pacific Rim nations are expected to discuss regional economic growth and cooperation.
Trump’s upbeat tone and his face-to-face engagement with Xi have drawn global attention as both nations attempt to find common ground amid growing economic and geopolitical headwinds.
