Trump-Xi meet in Busan: US President Donald Trump on Thursday hinted at the possibility of a trade deal between the United States and China during his meeting with Chinese President Xi Jinping in Busan, South Korea, ahead of the 2025 APEC Summit. When a reporter asked, “Mr President, do you plan to sign a trade deal today?” Trump replied, “could-be.” Speaking about the state of relations, he added, “We all have a great understanding.” “I think we’re going to have a fantastic relationship for a long period of time, and it is an honor to have you with us.” Trump added.
Chinese President Xi Jinping said that both nations’ economic teams had recently achieved a “basic consensus” on major issues, setting the stage for meaningful discussions. This will be their first in-person encounter after a long gap of six years. The high stake meeting had the negotiations on the Tariff. The two leaders last met in person during Donald Trump’s first term. Now, their renewed engagement is designed to rebuild a fragile trade truce that has weakened in recent months. Both sides are entering the talks with caution but also cautious hope, and Washington has made clear it wants a “substantial framework” to stabilise their relations.
Ahead of the meeting in Busan, Trump said that he expects to seal a ‘great deal’ with China.
“Xi a very tough Negotiator”- Donald Trump
Trump-Xi meet in Busan: The two leaders greeted each other with a handshake on a red carpet lined with the US and China flags, before beginning discussions largely focused on trade and economic relations. Trump described Xi as a “very tough negotiator,” indicating that their dialogue would centre on long-standing economic disputes.
The meeting took place a day before the 2025 APEC Summit, which is set to be held in Gyeongju from October 31 to November 1. Global attention has been on whether Washington and Beijing can ease tensions that have strained bilateral ties in recent months.
Beijing reportedly showed readiness to relax restrictions on rare earth exports
Officials from both countries said the talks provided an opportunity to stabilise relations amid ongoing trade friction. Trump’s tariff measures and China’s restrictions on rare earth exports have contributed to global economic uncertainty, prompting both sides to seek common ground.
Ahead of the meeting, US officials indicated that Trump was unlikely to move forward with his earlier warning to impose a 100 per cent import tax on Chinese goods.
Beijing, meanwhile, reportedly showed readiness to relax restrictions on rare earth exports and resume soybean imports from the United States. While en route to South Korea aboard Air Force One, Trump told reporters he was considering reducing tariffs linked to China’s role in fentanyl production. “I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” he said, adding, “The relationship with China is very good.”
Before the talks, Trump posted on Truth Social, referring to the meeting as the “G2,” highlighting the economic strength of the United States and China relative to other blocs such as the G7 and G20.
Chinese President XiJinping’s Reaction on Meeting with Donald Trump
Xi said that China and the U.S. should see each other not as rivals but as partners and friends, because both history and today’s reality demand cooperation rather than confrontation. He acknowledged that friction between the two major economies is normal given their size and clout, but stressed that in the face of challenges they must steer their relationship in the right direction together.
“It feels very warm seeing you again. Since your reelection, we have spoken on the phone three times, exchanged several letters and stayed in close contact. Given our national condition, we don’t see eye to eye with each othe,r and it is normal for the two leading economies in the world to have friction now and then,” the Chinese President said.
“In the face of winds, waves and challenges, you and I at the helm of China-US relations should stay on the right course and steadily sail forward the giant ship of China-US relations. I always say China’s development goes hand in hand with your vision to make America great again. Our two countries are fully able to help each other succeed and prosper together. I have stated in public many times that China and the US should be partners and friends. This is what history taught us and reality demands,” he added.
Exports Curbs on Rare-Earth Minerals
US Treasury Secretary Scott Bessent said that Chinese negotiators have agreed to postpone the planned export curbs on rare-earth minerals—a move that could have disrupted global industries. In exchange, Beijing is expected to resume buying large amounts of U.S. soybeans, signalling a gesture of goodwill toward American farmers.
About APEC
The Asia‑Pacific Economic Cooperation (APEC) was founded in 1989 with the goal of promoting economic cooperation among Pacific-rim economies.Today its 21 member economies represent more than half of global GDP and about 40 percent of the world’s population.However, the current summit is unfolding amid significant divisions over tariffs, technology restrictions and competing economic visions. As the U.S. emphasises protectionist policies and China promotes state-led growth, these tensions challenge APEC’s founding principle of open trade and investment.
