US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, raising cautious hopes of easing tensions between the world’s two largest economies. Trump described the meeting in South Korea as “amazing,” while Beijing said both sides had reached a consensus to address “major trade issues.” Relations have been rocky since Trump imposed sweeping tariffs on Chinese goods, prompting Beijing’s retaliation. A short-lived truce in May failed to end the confrontation.
No formal trade deal came from Thursday’s talks, but both leaders hinted at progress. Behind closed doors, negotiators have struggled for months to settle long-standing disputes. Trade agreements often take years to complete, but Trump’s fast-moving tariff policies have forced governments to act quickly. Several of those nations are in Asia, where Trump spent the past week driving his economic agenda.
Beijing lifts rare earth controls and resumes farm imports
China agreed to remove export restrictions on rare earth minerals essential for smartphones, electric vehicles, and defense technology. The move marked a symbolic victory for Trump. Speaking aboard Air Force One, he said China would immediately start purchasing “tremendous amounts of soybeans and other farm goods.” Chinese tariffs had previously frozen US soybean imports, hurting American farmers — a key group of Trump supporters.
US Treasury Secretary Scott Bessent confirmed that China would buy 12 million metric tonnes of soybeans this season and commit to at least 25 million tonnes per year for the next three years. After the meeting, Washington also said it would ease certain tariffs related to ingredients used in fentanyl production, a drug Trump has blamed China, Canada, and Mexico for failing to control.
Sean Stein, president of the US-China Business Council, said the progress on rare earths and tariffs was the most important outcome of the meeting. He explained that businesses now have more stability to engage both governments on persistent trade challenges. Yet many tariffs remain, with US importers still paying over 40 percent taxes on Chinese products.
For China, the meeting offered new diplomatic openings. Trump announced that Xi could soon hold talks with Jensen Huang, head of US chip giant Nvidia. The company is central to the dispute over AI technology. While China seeks advanced processors, Washington continues to limit access over national security concerns. Xi also invited Trump to visit China in April, a move seen as a sign of improving ties. Still, there was no progress on TikTok, which remains a sticking point between the two countries.
Different tones define the leaders’ approach
The meeting underscored the contrast between both leaders. Xi stayed composed and deliberate, sticking to his prepared remarks. China entered the talks with confidence, having diversified trade partnerships and reduced its dependence on the US. After the meeting, Xi said both sides would work on outcomes that serve as a “reassuring pill” for their economies.
Trump, on the other hand, appeared more tense than during earlier stops on his Asia tour. The grandeur of previous visits was absent. The two met inside a guarded airport building behind barbed wire and checkpoints. Despite the modest setting, the 80-minute conversation became the defining moment of Trump’s trip.
Henry Wang, a former adviser to China’s State Council, said the talks “went very well.” While no formal deal was signed, he said both sides had created “a framework and structure” for future progress. He called it “a good start” toward rebuilding one of the world’s most powerful and complex economic relationships.
