US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, renewing fragile hopes that the two largest economies could ease years of economic tension. Trump described the encounter in South Korea as “amazing,” while Beijing said both sides had agreed to address “major trade issues.” Relations have been strained since Trump imposed heavy tariffs on Chinese imports, triggering swift retaliation. A brief truce in May brought little relief.
Though the meeting produced no formal deal, both leaders signaled real progress. Negotiators have spent months trying to find common ground on trade and technology. Trade deals often take years to complete, but Trump’s fast-moving tariff campaign has pushed other nations to react quickly. Many of those affected are in Asia, where Trump has spent the past week advancing his economic agenda.
China lifts rare earth limits and resumes major US farm buys
China agreed to end export restrictions on rare earth minerals, vital for electronics, defense systems, and electric vehicles. The decision marked a symbolic win for Trump. Speaking aboard Air Force One, he said China would immediately begin purchasing “tremendous amounts of soybeans and other farm products.” Chinese tariffs had nearly halted those imports, deeply affecting US farmers — one of Trump’s core voter bases.
US Treasury Secretary Scott Bessent said 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. After the meeting, Washington announced plans to ease some tariffs related to chemicals used in fentanyl production, a drug issue Trump has blamed China and other countries for.
Sean Stein, president of the US-China Business Council, said the progress on rare earths and tariffs was the most meaningful outcome of the talks. He said it offered businesses some stability to engage both governments on long-standing trade challenges. Yet most tariffs remain in place, meaning US importers still face taxes of more than 40 percent on Chinese goods.
Beijing also secured new diplomatic openings. Trump revealed that Xi may soon meet with Jensen Huang, chief executive of US tech firm Nvidia. The company lies at the heart of the battle over AI chips. China wants access to high-end processors, while Washington restricts exports for security reasons. Xi also invited Trump to visit China in April, signaling warming ties. However, there was no breakthrough on TikTok, which remains under US scrutiny.
Xi stays steady as Trump seeks a breakthrough
The meeting highlighted the contrast between the two leaders’ approaches. Xi appeared composed and deliberate, sticking closely to his prepared remarks. China entered the talks from a stronger position after diversifying its trading partners and reducing reliance on US markets. After the meeting, Xi said both countries would pursue measures serving as a “reassuring pill” for their economies.
Trump seemed more tense than at earlier stops on his Asia trip. The grandeur of past receptions was missing. The two leaders met inside a secured airport building surrounded by police and reporters. Despite the modest setting, the 80-minute conversation became the defining moment of Trump’s tour.
Henry Wang, a former adviser to China’s State Council, said the discussions “went very well.” While no trade deal was signed, he said both leaders had built “a framework and structure” for future cooperation. He called the outcome “a good start” toward repairing one of the world’s most important yet fragile economic relationships.
