Copyright france24
President Donald Trump met face-to-face with Chinese leader Xi Jinping on Thursday, giving the leaders of the world’s two largest economies a chance to stabilize relations after months of turmoil over trade issues. Trump’s aggressive use of tariffs since returning to the White House for a second term, combined with China’s retaliatory limits on exports of rare earth elements, has given the meeting newfound urgency. Both sides recognize that neither wants to risk blowing up the world economy in ways that could jeopardize their own fortunes. “We’re going to have a very successful meeting, I have no doubt,” Trump said as they shook hands. The American president added that Xi is a “very tough negotiator.” Trump said they “could” possibly sign a deal coming out of the meeting but that they have a “great understanding” of each other. When the two were seated, Xi read prepared remarks emphasizing a willingness to work together despite differences. “Given our different national conditions, we do not always see eye to eye with each other,” he said through a translator. “It is normal for the two leading economies of the world to have frictions now and then.” Read moreTrump approves South Korea’s plan to build nuclear-powered submarine There was a slight difference in translation, as China’s Xinhua News Agency reported Xi as telling Trump that having some differences is inevitable. In the days leading up to the meeting, US officials signaled that Trump did not intend to follow through on a recent threat to impose an additional 100% import tax on Chinese goods — and China showed signs it was willing to relax export controls on rare earths and resume purchases of American soybeans. The meeting began at 11:13 a.m. (10 p.m. ET) in Busan, South Korea, a port city about 76 kilometers (47 miles) south of Gyeongju, the main venue for the Asia-Pacific Economic Cooperation summit. Trump’s helicopter landed at 10:17 a.m. local time, with an Air China plane rolling onto the tarmac about 10 minutes later. The talks lasted a little over 100 minutes, with the two leaders emerging out the front door and speaking briefly. They shook hands, and Trump appeared to say something into Xi’s ear just before the Chinese leader entered his limousine. Trump was shortly back aboard Air Force One to return to the United States. Officials from both countries had met earlier this week in Kuala Lumpur to lay the groundwork for their leaders. Afterward, China’s top trade negotiator, Li Chenggang, said they had reached a “preliminary consensus,” a statement affirmed by US Treasury Secretary Scott Bessent, who called it “a very successful framework.” Trump told reporters while flying to South Korea aboard Air Force One that he may reduce tariffs placed on China earlier this year in connection with its role in fentanyl production. “I expect to be lowering that because I believe they’re going to help us with the fentanyl situation,” Trump said, later adding, “The relationship with China is very good.” Shortly before the meeting, Trump posted on Truth Social that it would be the “G2,” a recognition of America and China’s status as the world’s two biggest economies. The Group of Seven and Group of 20 are other forums of industrialized nations. But while those summits often take place in luxurious venues, this meeting unfolded in humbler surroundings — a small gray building with a blue roof on a military base adjacent to Busan’s international airport. The anticipated détente has given investors and businesses caught between the two nations a sense of relief. US stock markets have climbed on hopes of a trade framework emerging from the talks. However cordial the rhetoric, Trump and Xi remain on a potential collision course as their countries compete to dominate manufacturing, develop emerging technologies such as artificial intelligence, and shape global affairs — including the status of Russia’s war in Ukraine. Trump indicated that he did not plan to bring up issues such as Taiwan’s security with Xi. Read moreUS TikTok will be mostly under American control, White House says “The proposed deal on the table fits the pattern we’ve seen all year — short-term stabilization dressed up as strategic progress,” said Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies. “Both sides are managing volatility, calibrating just enough cooperation to avert crisis while the deeper rivalry endures.” The United States and China have each shown they believe they have leverage over the other, and the past year has demonstrated that tentative steps forward can be short-lived. For Trump, that leverage comes from tariffs. China has faced new tariffs this year totaling 30%, of which 20% has been tied to its role in fentanyl production. But the rates have been volatile. In April, Trump announced plans to raise tariffs on Chinese goods to 145%, only to abandon the move as markets recoiled. Then, on October 10, Trump threatened a 100% import tax in response to China’s rare earth restrictions. Xi has his own pressure point in the world economy: China is the top producer and processor of the rare earth minerals used to make fighter jets, robots, electric vehicles, and other high-tech products. China tightened export restrictions on October 9, repeating a familiar cycle in which each nation jockeys for advantage only to back down after renewed talks. What happens after the meeting may prove just as significant. Trump plans to return to Washington, while Xi will remain in South Korea to meet regional leaders during the Asia-Pacific Economic Cooperation summit, which officially begins Friday. “Xi sees an opportunity to position China as a reliable partner and bolster bilateral and multilateral relations with countries frustrated by the US administration’s tariff policy,” said Jay Truesdale, a former State Department official and CEO of TD International, a risk and intelligence advisory firm. (FRANCE 24 with AP)
