BUSAN, South Korea – U.S. President Donald Trump met with Chinese President Xi Jinping at a military base in South Korea on Thursday in hopes of reaching a ceasefire in the ongoing trade war between the world’s two largest economies.
The meeting in the southern port city of Busan marked the first in-person encounter between the two leaders since 2019 and capped Trump’s Asia trip, during which he announced several trade advances with South Korea, Japan, and Southeast Asian nations.
Trump and Xi shook hands before the talks, with Xi showing minimal expression as Trump told reporters that a trade deal could be signed on Thursday. During discussions with their respective delegations, Xi noted through an interpreter that it is natural for two leading economies to have occasional disagreements. He added that Chinese and U.S. trade negotiators recently reached a basic consensus on addressing key concerns and expressed his willingness to continue working with Trump to lay a solid foundation for China-U.S. relations.
The Chinese yuan strengthened to its highest level against the U.S. dollar in nearly a year, reflecting investor expectations of eased trade tensions. Global stock markets, from Wall Street to Tokyo, reached record highs in recent days.
Trump spoke about the possibility of a deal during the meeting, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. However, both countries remain prepared to adopt tough measures on economic and geopolitical competition, leaving questions about the durability of any trade compromise.
Trade tensions reignited this month after Beijing proposed expanding restrictions on rare-earth mineral exports, crucial for high-tech applications, which China dominates. Trump announced plans to respond with a 100% tariff on Chinese exports and other measures, including potential restrictions on U.S.-produced software exports to China, which could impact the global economy.
The White House signaled hopes that this summit would be the first of several meetings between Trump and Xi next year, potentially including reciprocal visits by the two leaders. (TNA)
