US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, reviving hopes of easing tensions between the world’s two largest economies. Trump called the meeting in South Korea “amazing,” while Beijing said both sides reached a consensus to address “major trade issues.” The relationship has been rocky since Trump began imposing tariffs on Chinese goods, triggering Beijing’s swift retaliation. Although both agreed to a truce in May, mistrust lingered.
The latest talks produced no formal trade agreement but signaled movement toward one. Behind closed doors, negotiators have wrestled with complex terms for months. Trade deals normally take years, yet Trump’s aggressive tariffs forced quick responses from other nations. Many of those affected are in Asia, where Trump spent recent days promoting his economic agenda.
Rare earths deal and soybean boost for farmers
China agreed to lift export restrictions on rare earth minerals, crucial for making smartphones, electric vehicles, and defense equipment. The move marked a symbolic victory for Trump. Speaking aboard Air Force One, he said China would start buying “tremendous amounts of soybeans and other farm products.” Beijing’s tariffs had frozen US soybean imports, hurting American farmers — a key group in Trump’s voter base.
US Treasury Secretary Scott Bessent said China would purchase 12 million metric tonnes of soybeans this season and commit to buying at least 25 million tonnes annually for the next three years. After the meeting, Washington also confirmed it would reduce certain tariffs linked to ingredients used in fentanyl production. Trump has blamed China, along with Canada and Mexico, for allowing the flow of the drug into the US.
Sean Stein, president of the US-China Business Council, described the progress on rare earths and tariffs as the most positive outcome of the talks. He said businesses would now have time to focus on long-standing issues affecting trade between both countries. However, most tariffs remain, leaving US importers paying over 40 percent taxes on Chinese goods.
Beijing also gained small wins. Trump said China could now hold direct talks with Jensen Huang, head of US tech giant Nvidia. The company is central to the ongoing clash over AI chips. While China seeks access to advanced processors, Washington continues to block sales over national security concerns. Xi also invited Trump to visit China in April, signaling a potential thaw. Still, there was no progress on the dispute over TikTok’s US operations.
Xi’s discipline meets Trump’s improvisation
The meeting exposed clear differences between the two leaders. Xi stayed composed and relied on carefully prepared remarks. China entered the talks in a stronger position, having diversified trade ties and reduced its dependence on the US. After the meeting, Xi said both nations would pursue results that act as a “reassuring pill” for their economies.
Trump, by contrast, spoke freely and appeared more tense than during his earlier stops in Asia. Gone were the grand ceremonies and lavish settings. The meeting took place inside a guarded airport building, surrounded by police and media. Despite the modest venue, the hour and 20 minutes spent together became the most significant moment of Trump’s trip.
Henry Wang, a former adviser to China’s State Council, said the discussions “went very well.” While no trade deal was finalized, he said both leaders had laid “a framework and structure” for future cooperation. He called it “a good start” toward rebuilding one of the world’s most vital economic partnerships.
