In a pivotal moment for global economics and diplomacy, U.S. President Donald Trump and Chinese President Xi Jinping met face-to-face for the first time in six years on October 30, 2025, at a South Korean air base in Busan. This highly anticipated encounter, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, signaled a potential turning point in the ongoing trade war that has rattled markets and strained relations between the world’s two largest economies.
The nearly two-hour meeting, which concluded Trump’s whirlwind five-day trip across Asia, was marked by cautious optimism and a flurry of market activity. According to AsiaOne, Chinese stocks soared to a decade high and the yuan climbed to a near one-year peak against the U.S. dollar as investors bet on an easing of trade tensions. World stock markets from Wall Street to Tokyo echoed this optimism, hitting record highs in the days surrounding the summit.
Trump, never one to shy from the spotlight, greeted Xi with characteristic bravado. “We know each other very well, we have a great relationship,” he told reporters as the two leaders posed for cameras. “We are going to have a very successful meeting, there is no doubt. He is a very tough negotiator. He is a great leader of a great country. We are going to have a great relationship for a very long time,” Trump declared, as reported by Business Today.
Xi, typically measured, responded with a metaphor that struck a chord with the assembled delegations: “In the face of winds, waves, and challenges, you and I, at the helm of China-U.S. relations, should stay the right course and ensure the steady sailing forward of the giant ship of China-U.S. relations. I always believe that China’s development goes hand in hand with your vision to Make America Great Again. Our two countries are fully able to help each other succeed and prosper together. Over the years, I have stated in public many times that China and the United States should be partners and friends. This is what history has taught us...”
The substance behind the handshakes and photo opportunities was weighty. The meeting followed a fresh flare-up in the trade war earlier in October, when Beijing proposed dramatically expanding curbs on exports of rare-earth minerals—materials critical for high-tech industries and a sector where China holds overwhelming dominance. Trump’s response was swift and severe: threats of additional 100% tariffs on Chinese exports, along with possible restrictions on exports to China made with U.S. software. These moves, analysts warned, could have upended the global economy if left unchecked.
Yet, in the days leading up to the summit, there were signs of movement. Trade negotiators from both sides had convened in Kuala Lumpur and, according to Xi, reached a “fundamental consensus on addressing each other’s primary concerns.” U.S. Treasury Secretary Scott Bessent told Reuters that he expected Beijing to delay its rare earth controls for a year and revive purchases of U.S. soybeans—an essential crop for American farmers—under a “substantial framework” to be agreed upon by the leaders.
Indeed, in a gesture of goodwill, China purchased its first shipments of U.S. soybeans in several months just before the summit. This development was seen as a positive sign for American agriculture, which has been hit hard by the tit-for-tat tariffs of recent years.
Despite the upbeat tone, both sides made clear that the road ahead would not be easy. The U.S. and China have grown increasingly willing to play hardball over economic and geopolitical competition, with many analysts describing the current standoff as a new Cold War. Ryan Hass of the Brookings Institution remarked, “Those chokepoints will remain, loaded guns resting on the table, as both leaders look for ways to reduce their national dependence on each other for critical inputs.”
The White House, for its part, signaled hopes that this summit would be the first of several between Trump and Xi in the coming year, with possible reciprocal visits on the horizon. However, Trump’s team is eager for quick progress, particularly on issues being closely watched by the global business community.
One such issue is America’s opioid crisis. Trump stated on Wednesday that he expects to reduce U.S. tariffs on Chinese goods in exchange for Beijing’s commitment to curb the flow of precursor chemicals used to make fentanyl, a deadly synthetic opioid that remains the leading cause of overdose deaths in the United States. According to AsiaOne, Bessent confirmed that China had agreed to help curb the flow of fentanyl precursors, though it was unclear what, if any, U.S. concessions were made in return.
Other contentious topics remain unresolved. Beijing has sought the lifting of 20% tariffs related to fentanyl, an easing of export controls on sensitive U.S. technology, and a rollback of new U.S. port fees on Chinese vessels—fees aimed at countering China’s dominance in shipbuilding and ocean freight. Meanwhile, Trump has floated the prospect of a final deal with Xi on TikTok, the social media giant facing a U.S. ban unless its Chinese owners divest American operations.
Adding to the complexity, previous deals that had sharply reduced retaliatory tariffs (to about 55% on the U.S. side and 10% on the Chinese side) and restarted the flow of rare earth magnets from China are set to expire on November 10. Scott Kennedy of the Center for Strategic and International Studies predicted, “I expect for the moment they will kick the can down the road,” suggesting that any agreement emerging from Busan may be more stopgap than sweeping.
Strategic tensions over Taiwan also loomed large. On Sunday, Chinese state media reported that H-6K bombers had flown near Taiwan to practice “confrontation drills.” Despite this, U.S. Secretary of State Marco Rubio reassured that Taiwan should not be concerned about the U.S.-China talks, emphasizing that Washington is legally bound to provide the island with means for self-defense. Alex Gray, former White House National Security Council chief of staff, dismissed fears that Trump might sacrifice Taiwan for a grand bargain with Beijing, calling such speculation “a Washington think-tank fever dream.”
Trump’s Asia trip also saw the signing of pacts with Japan and Southeast Asian nations on rare earth minerals, a move designed to blunt China’s stranglehold on these critical resources used in everything from automobiles to fighter jets. This broader regional strategy underscores the multifaceted nature of U.S.-China rivalry, extending far beyond tariffs and trade balances.
As the leaders departed Busan—Trump with a red carpet send-off and Xi escorted to his car—the world was left to ponder the durability of any détente. The fundamental issues underpinning U.S.-China competition remain unresolved, and both sides appear prepared for a protracted negotiation process. For now, markets may breathe a sigh of relief, but the underlying currents of rivalry and mistrust continue to swirl beneath the surface.
In the end, the Trump-Xi summit in Busan offered a glimmer of hope for a trade thaw, but lasting peace between the economic giants will require more than handshakes and hopeful rhetoric.
