KYONGJU, South Korea (AP) – President Donald Trump is scheduled to speak directly with Chinese President Xi Jinping on Thursday, marking an opportunity for the leaders of the world’s two largest economies to meet. stabilize the relationship After months of turmoil over trade issues.
Since returning to the White House for a second term, President Trump has aggressively used tariffs, coupled with restrictions on China’s retaliation. Export of rare earth elements It gave the meeting a new sense of urgency. There is a mutual recognition that neither side wants to risk blowing up the global economy in a way that could jeopardize the fate of their countries.
In the days leading up to the meeting, U.S. officials indicated that Trump had no intention of resolving the issue. recent threats An additional 100% import tax will be imposed on Chinese products – and China has indicated its intention to ease the tariffs. Rare earth export regulations and buy again American soybeans.
President Trump boarded Air Force One further on his way to South Korea, where he told reporters he may reduce tariffs he imposed on China earlier this year. Role in the production of fentanyl.
“We’re hoping for a reduction because we believe they’re going to help us with the fentanyl issue,” Trump said, later adding, “We have a very good relationship with China.”
The meeting is scheduled to begin at 11 a.m. (8 p.m. ET) in Busan, South Korea. Busan is a port city about 76 kilometers (47 miles) south of Gyeongju, the main venue. Asia-Pacific Economic Cooperation Summit.
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At a dinner with other APEC leaders on Wednesday night, President Trump was caught on microphone saying that he would speak with Xi for “three or four hours” and then return to Washington.
Officials from both countries met in Kuala Lumpur earlier this week to lay the groundwork for leadership. China’s top trade negotiator, Li Chengang, later said the two countries had reached a “preliminary agreement,” a statement echoed by US Treasury Secretary Scott Bessent. very successful framework”
The expected easing of tensions has brought relief to investors and businesses caught between the two countries. US stock market The rate rose on expectations that a trade framework would be drawn up at the meeting.
No matter how friendly the rhetoric, Trump and Xi remain on a potential collision course as the two countries vie for manufacturing supremacy, the development of emerging technologies such as artificial intelligence, and the shaping of global affairs, including the status of Russia’s war in Ukraine. President Trump has indicated to Xi that he does not intend to raise issues such as Taiwan’s security.
“The proposed deal on the table fits the pattern we’ve seen all year: short-term stabilization masquerading as strategic progress,” said Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies. “The two countries have managed instability and coordinated sufficient cooperation to avert a crisis while serious conflict continues.”
The past year has shown that tentative progress may not last, with the United States and China each indicating they believe they have the means to pressure the other.
For Trump, That pressure is coming from tariffs..
Currently, China faces new tariffs totaling 30% this year, 20% of which are related to China’s role in fentanyl production. However, tariff rates are unstable. In April, he announced plans to raise tax rates on Chinese goods to 145%, but abandoned the plan after the market slumped.
And earlier this month, ahead of his meeting with President Xi Jinping, President Trump threatened to impose a 100% import tax because of China’s rare earth regulations.
Mr. Xi has a stranglehold on the global economy because China is the largest producer and processor of rare earth minerals needed to make fighter jets, robots, electric cars and other high-tech products.
China tightened export controls on Oct. 9, just before Trump and Xi met, repeating the cycle of countries vying for an advantage and then withdrawing after more trade negotiations.
Even more important is what happens immediately after the meeting. Mr. Trump is scheduled to return to Washington, but Mr. Xi will remain in South Korea to meet with regional leaders during the Asia-Pacific Economic Cooperation meeting, which officially begins on Friday.
“Xi sees this as an opportunity to position China as a trusted partner and strengthen bilateral and multilateral relationships with countries that are dissatisfied with the administration’s tariff policies,” said Jay Truesdale, a former State Department official and CEO of risk intelligence advisory firm TD International.
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Mr. Bork reported from Tokyo.
