US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, offering a tentative sense of optimism that the world’s two largest economies might reduce their 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 did little to resolve deeper conflicts.
The meeting produced no formal trade agreement but indicated progress. Negotiators have spent months working to settle disputes over trade and technology. Trade deals usually take years, yet Trump’s aggressive tariff approach forced faster responses from other nations. Many of those affected are in Asia, where Trump has spent the past week promoting his economic agenda.
China lifts rare earth controls and resumes US farm imports
China agreed to remove export restrictions on rare earth minerals, crucial for smartphones, electric vehicles, and defense systems. The decision was seen as a symbolic win for Trump. Speaking aboard Air Force One, he said China would immediately resume purchasing “tremendous amounts of soybeans and other farm products.” Beijing’s tariffs had previously blocked those imports, hitting American farmers — a key part of Trump’s political base.
US Treasury Secretary Scott Bessent confirmed that China would buy 12 million metric tonnes of soybeans this season and commit to at least 25 million tonnes annually over the next three years. Washington also announced it would ease some tariffs on chemicals linked to fentanyl production, a drug issue Trump has long blamed China and other nations for.
Sean Stein, president of the US-China Business Council, described progress on rare earths and tariffs as the most important outcome of the meeting. He said it gave businesses stability to navigate long-standing trade challenges. Yet many tariffs remain, leaving US importers paying over 40 percent in taxes on Chinese goods.
Beijing also gained diplomatic opportunities. Trump revealed that Xi could soon meet Jensen Huang, CEO of US chip maker 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 stays composed while Trump seeks results
The meeting highlighted contrasting leadership styles. 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 focus on outcomes that serve as a “reassuring pill” for their economies.
Trump appeared more tense than during earlier stops on his Asia tour. The grandeur of past receptions was absent. The leaders met inside a guarded airport building surrounded by police and media. Despite the low-key setting, the 80-minute discussion became the defining moment of Trump’s visit.
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 created “a framework and structure” for future cooperation. He described the outcome as “a good start” toward stabilizing one of the world’s most important and fragile economic relationships.
