US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, raising cautious optimism that tensions between their countries might finally ease. Trump called the meeting in South Korea “amazing,” while Beijing said both sides had reached a consensus to tackle “major trade issues.” Relations between Washington and Beijing have been turbulent since Trump introduced heavy tariffs on Chinese goods, prompting fierce retaliation. A brief truce in May failed to calm the friction, keeping global markets on edge.
Though the meeting produced no formal trade agreement, both leaders hinted at progress behind closed doors. Negotiators have been working for months to resolve long-standing disputes. Trade deals typically take years, but Trump’s aggressive tariff strategy has forced nations to adapt quickly. Many affected partners are in Asia, where Trump spent recent days pursuing new economic leverage.
China lifts rare earth restrictions and restarts US farm imports
China agreed to remove export limits on rare earth minerals, key materials for smartphones, electric cars, and fighter jets. The decision marked an early success for Trump, who hailed the talks as productive. Speaking aboard Air Force One, he said China would immediately start buying “tremendous amounts of soybeans and other farm products.” Retaliatory tariffs from Beijing had nearly stopped those imports, devastating American farmers — one of Trump’s most loyal voter groups.
US Treasury Secretary Scott Bessent confirmed that China will buy 12 million metric tonnes of soybeans this season and at least 25 million tonnes annually for the next three years. Following the meeting, Washington also announced it would roll back part of the tariffs on chemicals linked to the production of fentanyl, a synthetic drug that Trump has blamed China and others for allowing to reach the US.
Sean Stein, president of the US-China Business Council, said the developments on rare earths and tariffs were the most substantial outcomes of the talks. He said they gave businesses breathing room to work with both governments on deeper trade problems. Yet, most tariffs remain in place, leaving American importers facing tax rates of over 40 percent on Chinese goods.
Beijing also gained small diplomatic wins. Trump revealed that Xi could soon meet Jensen Huang, the chief executive of US chipmaker Nvidia. The company sits at the center of a fierce battle over artificial intelligence technology. China wants access to advanced processors, while Washington restricts sales, citing security risks. Xi also invited Trump to visit China in April, hinting at a thaw in relations. But there was still no movement on TikTok, whose US operations remain under scrutiny.
Xi stays measured as Trump presses for momentum
The meeting revealed the clear difference in tone between the two leaders. Xi remained calm and deliberate, sticking to his prepared statements. China entered the talks in a stronger position, having reduced reliance on US markets and expanded trade with other nations. After the meeting, Xi said both countries would work on results that act as a “reassuring pill” for their economies.
Trump appeared more tense than during earlier stops on his Asia tour. The grandeur of previous receptions was missing. Gone were the palaces and parades. Instead, the talks took place in a guarded airport building surrounded by police and reporters. Despite the low-key setting, the 80-minute discussion became the defining moment of his trip.
Henry Wang, a former adviser to China’s State Council, said the talks “went very well.” While no deal was signed, he said both leaders had built “a framework and structure” for future cooperation. He described the meeting as “a good start” toward stabilizing one of the world’s most vital but fragile economic relationships.
