Background and Relevance
President Donald Trump and Chinese President Xi Jinping initiated their first face-to-face meeting in six years on Thursday, aiming to find a truce that could halt the ongoing trade war between China and the United States, which has shaken global markets and disrupted supply chains for months.
Meeting Context
The meeting took place in Busan, South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, which runs until Saturday in the southern city of Gyeongju. Trump announced that he had instructed the Department of War to begin testing nuclear weapons “on an equal footing,” placing China in a distant third place behind the United States and Russia, but predicting that within five years, China will be on par.
Xi Jinping emphasized the importance of the United States and China being “partners and friends,” stating that they should “jointly shoulder” their responsibilities as significant countries and work together to achieve greater, more concrete accomplishments.
Key Trade Issues
- Trade Tensions: The primary focus of the meeting is to prevent further escalation in their ongoing trade dispute, which has caused market volatility and supply chain disruptions.
- Fentanyl Reduction: Trump mentioned a potential bilateral agreement that would reduce tariffs by 20% on Chinese products related to fentanyl, a potent opioid responsible for the deaths of tens of thousands of Americans.
- Rare Earth Export Restrictions: Another critical issue is China’s recent export restrictions on rare earth materials, crucial for industries like technology and defense. These restrictions prompted Trump to question the meeting with Xi.
Additional Developments in Asia
Corea del Sur is the final stop on Trump’s Asia tour, where he has received praise and gifts, including a replica of an ancient Korean golden crown. In Japan, new Prime Minister Sanae Takaichi pledged to nominate Trump for the Nobel Peace Prize and gifted him a golf club and a gold-plated golf ball.
Trump’s hopes of meeting with North Korean leader Kim Jong Un in the Demilitarized Zone appear to have faded. However, he praised the military alliance with South Korea as “stronger than ever” and approved Seoul’s construction of a nuclear-powered submarine.
APEC Summit and Other Leaders
The Trump-Xi meeting will overshadow the APEC summit, where leaders from Japan, Australia, Canada, and Chile will participate. Mexico’s representative, Commerce Minister Marcelo Ebrard, is engaged in trade negotiations with the United States, aiming to advance “the next steps” toward a trade agreement before 2026.
The Trans-Pacific Partnership (T-MEC) free trade agreement, shared by Mexico, the United States, and Canada, will undergo a review in 2026.
Key Questions and Answers
- What is the main topic of the Trump-Xi meeting? The primary focus is to find a truce in their ongoing trade war, which has caused market volatility and supply chain disruptions.
- What are the key trade issues on the agenda? The issues include reducing tariffs on fentanyl-related Chinese products and addressing China’s export restrictions on rare earth materials.
- What other developments are taking place in Asia during Trump’s visit? Trump has received praise and gifts during his Asia tour, including a golden crown replica from South Korea. He also met with Japan’s new Prime Minister Sanae Takaichi, who nominated him for the Nobel Peace Prize.
- What is the significance of the APEC summit? The APEC summit in South Korea brings together leaders from various countries, including the United States, China, Japan, Australia, Canada, and Chile. The summit aims to foster cooperation and dialogue on economic and trade issues in the Asia-Pacific region.
