Meeting Between Trump and Xi
Donald Trump has described crucial trade talks with Chinese President Xi Jinping as "amazing" – and said he will visit Beijing in April. The leaders of the world’s two largest economies met in South Korea to defuse growing tensions – both countries have imposed aggressive tariffs on exports since the start of the president’s second term.
Details of the Meeting
Aboard Air Force One, Mr. Trump confirmed the imposition of tariffs on Chinese goods exported to the US would be reduced, which could provide much-needed relief for consumers. It was also agreed that Beijing would work “hard” to stop the flow of fentanyl into the US. Semiconductor chips were another topic raised during their 100-minute meeting, but the president admitted that certain topics were not discussed.
Assessment of the Meeting
“On a scale of one to 10, the meeting with Xi was 12,” he told reporters on his way back to the United States. Xi is a “tough negotiator,” says Trump. The talks cap a turbulent visit across Asia in which Mr Trump said he was "too busy" to see Kim Jong Un. However, the president said he was willing to fly back to the North Korean leader to discuss denuclearization.
Outcome of the Meeting
Mr. Trump had predicted that negotiations with his Chinese counterpart would last three to four hours – but their meeting ended in less than two hours. The pair shook hands before the summit, after which the US president quipped: "He’s a tough negotiator – and that’s not good!" It is the first face-to-face meeting between both men since 2019 – back in Mr Trump’s first term.
Economic Impact
There were signs that Beijing had extended an olive branch to Washington ahead of the talks, confirming that China would resume buying U.S. soybeans. American farmers have been feeling the pinch since China halted purchases earlier this year – not least because the country was their largest foreign market. Chinese stocks hit a 10-year high early Thursday as investors digested their session, with the yuan rising to a one-year high against the U.S. dollar.
Analysis of the Meeting
It was fascinating to watch the power play between both world leaders. Trump moved quickly to dominate the room – leaning in, doing all the talking and even responding very briefly to a few questions asked. This didn’t even raise an eyebrow from his counterpart, who was difficult to understand the whole time. Xi doesn’t like unscripted moments and doesn’t react well to them; Trump lives for them.
Future Relations
Based on Trump’s initial comments, it appears that the meeting has made progress on important issues, although the language so far is vague and the tone "Trumpian." While agreements to ease the flow of rare earths, lower tariffs, further talks on chips and stem the flow of fentanyl precursors are laudable, Trump’s "12 out of 10" assessment of the meeting likely glosses over the fact that thornier issues remain. Both economies urgently needed stabilization after the severe instability of the last few months and years. The willingness to reach an agreement on such diverse issues clearly speaks for this. But in some ways the economy is the easier part, there are still a plethora of thornier political questions that separate them; The future of Taiwan, for example, was not even brought up. It’s also unclear whether any form of warranty will be built in; What can prevent tensions on both sides from rising again as soon as the next stumbling block arises? In short, today we may have tackled the low-hanging fruit, but it will be harder to reverse the now deep-seated distrust.
Next Steps
On Truth Social, Mr Trump had described the summit as a meeting of the "G2" – a nod to America and China’s status as the world’s two largest economies. He also revealed that the US War Department has now been ordered to begin testing nuclear weapons for the first time since 1992.
