In a pivotal diplomatic encounter that could reshape the global economic landscape, former U.S. President Donald Trump and Chinese President Xi Jinping met Thursday in Busan, South Korea, seeking to thaw months of escalating trade hostilities between the world’s two largest economies.
The summit, convened behind closed doors at the Busan International Convention Center, marked the first direct meeting between Trump and Xi since renewed tariffs reignited the U.S.–China trade war earlier this year.
“Both sides recognize that continued economic confrontation benefits no one,” said U.S. Trade Representative Katherine Tai in a pre-meeting briefing. “We are exploring a path toward stability without compromising national interests.”
Chinese officials, meanwhile, described the talks as “constructive yet cautious,” emphasizing Beijing’s demand for “mutual respect and balanced benefits.”
⚖️ Tariffs, Rare Earths, and Technology
At the heart of the new dispute lies China’s decision to tighten exports of rare-earth minerals, essential for U.S. manufacturing of electric vehicles and defense technologies. The Trump administration retaliated with fresh tariffs on Chinese steel and semiconductor components — a move analysts say could ripple through global supply chains.
“This meeting is not about friendship; it’s about survival,” said Dr. Mei Lin, senior economist at the Shanghai Institute for Global Affairs. “China wants relief from economic pressure, while Trump wants symbolic victory before the election cycle intensifies.”
Reports from both delegations suggest discussions included partial tariff suspensions, a joint review of intellectual-property enforcement, and a potential agricultural purchase agreement reminiscent of the 2020 trade deal.
🌍 Global Markets Watching Closely
The mere prospect of compromise sent cautious optimism across markets. The Dow Jones Industrial Average rose 1.3% in pre-market trading, while Asian stocks posted modest gains. Still, economists warn the underlying tension runs deep.
“Even if a temporary truce is announced, structural competition over advanced technologies and geopolitical influence will persist,” said Craig Singleton of the Foundation for Defense of Democracies. “This is short-term stabilization dressed up as strategic progress.”
🧭 Why This Meeting Matters
- A diplomatic thaw could stabilize global markets and cool inflationary pressures.
- The summit tests whether Trump can deliver concrete results from his renewed foreign-policy stance.
- The talks highlight the fragile balance of power in trade, technology, and global governance.
For now, both leaders have agreed to “continue dialogue,” with follow-up talks expected in Washington early next year.
Source: Apnews.com
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