U.S. President Donald Trump and Chinese President Xi Jinping are set to meet Thursday morning in Busan, South Korea, in a high-stakes bid to revive the fragile trade truce between the world’s two largest economies. The talks, scheduled for 11 a.m. local time (0200 GMT), mark the leaders’ first meeting since Trump’s return to office in January and will take place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
Trump, buoyed by a trade breakthrough with South Korea, has expressed optimism about reaching new agreements with Xi. However, with both nations escalating their economic rivalry—seen by analysts as part of a “new Cold War”—the durability of any potential deal remains uncertain. The renewed trade war flared earlier this month when China announced plans to expand export restrictions on rare earth minerals critical to high-tech manufacturing. In response, Trump threatened 100% tariffs on Chinese exports and tighter controls on U.S.-made goods sent to China.
U.S. Treasury Secretary Scott Bessent indicated Beijing might delay its rare earth controls for a year and resume U.S. soybean purchases under a “substantial framework” expected from the summit. The White House hopes this meeting will pave the way for further summits between Trump and Xi, signaling ongoing negotiations. Trump also hinted at reducing tariffs if China commits to curbing fentanyl precursor chemicals fueling the U.S. opioid crisis.
Additionally, Trump suggested a potential agreement over TikTok’s U.S. operations could be part of future discussions. China’s Foreign Ministry spokesperson Guo Jiakun said Beijing is ready to “work together for positive results.”
Tensions over Taiwan, however, loom over the summit, as recent Chinese bomber drills near the island have heightened regional unease. Despite concerns, Washington reaffirmed its commitment to Taiwan’s defense under U.S. law.