Topline
President Donald Trump described his recent meeting with Chinese President Xi Jinping as “amazing,” highlighting a series of agreements between the two nations aimed at de-escalating trade tensions. These concessions include a reduction in tariffs related to fentanyl from China and a temporary halt on China’s export controls concerning critical rare earth minerals.
The leaders convened in Busan, South Korea, during the Asia-Pacific Economic Cooperation summit, engaging in discussions that lasted approximately an hour and 40 minutes.
Speaking to reporters aboard Air Force One on his return journey to Washington, Trump praised the meeting and commended Xi Jinping as a “great leader of a very powerful, very strong country.”
Trump announced plans to reduce tariffs on fentanyl-related products from China, lowering them from 20% to 10%. This decision follows Xi’s commitment to intensify efforts against the shipment of precursor chemicals used in producing the synthetic opioid.
Additionally, China has agreed to defer its planned export restrictions on critical rare-earth metals for a period of at least one year, according to Trump.
The president also revealed that China has committed to purchasing “tremendous amounts of soybeans” along with other agricultural products, with transactions expected to begin immediately.
The president then added that China has agreed to buy “tremendous amounts of the soybeans” and other farm products that “are going to be purchased immediately.”
In a Truth Social post a few hours later, Trump wrote: “President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products.”
Crucial Quote
“There is enormous respect between our two Countries, and that will only be enhanced with what just took place. We agreed on many things, with others, even of high importance, being very close to resolved,” Trump wrote in his Truth Social post.
What To Watch For
Trump told reporters he will be visiting China in April next year, which will be followed by a reciprocal visit to the U.S. by Xi. In his Truth Social Post Trump also said: “China also agreed that they will begin the process of purchasing American Energy. In fact, a very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska.” Trump didn’t share any more details about this purported energy purchase, but added: “Chris Wright, Doug Burgum, and our respective Energy teams will be meeting to see if such an Energy Deal can be worked out,” indicating that nothing has been finalized yet.
What Else Did Trump Say About The Meeting?
Trump and Xi’s meeting was primarily focused on trade rather than any major geopolitical issues. However, the president said the ongoing war in Ukraine came up “very strongly,” and the two leaders discussed it “for a long time.” Trump said: “We’re both going to work together to see if we can get something done. We agree that the sides are, you know, locked in and fighting and sometimes you have to let them fight, I guess.” Trump, however, said both sides did not discuss anything about Russian oil in the context of the Ukraine war. When asked about the issue of Taiwan, Trump said, “It never came up. Taiwan never came up. It’s not discussed, actually.”
What About Ai Chips And Nvidia?
When asked about any discussions on semiconductors, Trump offered very few details and said: “We did discuss chips…and they are going to be talking to Nvidia and others about taking chips and we make great chips.” Trump said he will have a word with Nvidia CEO Jensen Huang and said further discussions are between China and Nvidia, with the U.S. being “sort of the arbitrator or the referee.” Trump, however, noted that Nvidia’s most advanced Blackwell chips—whose exports to China have been restricted by Washington—were not discussed. U.S. Trade Representative Jamieson Greer also addressed the matter, saying: “The president was saying there’s so many chips we already sent to China a lot of advanced chips…as he said you know Nvidia will talk to China and see what’s possible. The Blackwell chips of course weren’t discussed.”
How Close Are The U.s. And China To A Trade Deal?
When asked how soon does he think the U.S. will be able to sign a trade deal with China, Trump said: “ I think pretty soon. We have not too many major stumbling blocks…we have a deal now. Every year we’ll renegotiate the deal, but I think the deal will go on for a long time, long beyond the year.”
What Have Chinese Officials Said?
China’s Ministry of Commerce issued a statement on Xi’s meeting with Trump, and confirmed that it was pausing its rare earths export control measures enacted earlier this month for a year. The commerce ministry also said China was extending a pause on its 24% “reciprocal tariffs” on U.S. good for another year. The statement noted that both sides had “reached a consensus on cooperating on fentanyl control, expanding agricultural trade and handling certain individual enterprise cases.” The statement also mentioned that both sides have also agreed to work closely to resolve the TikTok issue.
