U.S. President Donald Trump and Chinese President Xi Jinping will meet in South Korea on Thursday for high-level trade talks aimed at improving economic ties between the two countries. Both leaders are attending the Asia-Pacific Economic Cooperation (APEC) summit in Busan.
The meeting is scheduled for 11:00 a.m. local time and marks Trump’s first direct talks with Xi since starting his second term. Tensions between Washington and Beijing have remained high since Trump reignited a trade war early in his second term. Officials from both sides say they are hopeful this meeting will bring meaningful progress in the negotiations.
Draft Agreement and Key Agenda
Before the summit, U.S. and Chinese negotiators prepared a draft trade agreement during sideline discussions at the 13th ASEAN–U.S. Summit in Kuala Lumpur, Malaysia. The talks were led by U.S.
Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, who reached an initial understanding on issues such as trade expansion, export controls, tariff suspension, rare earth cooperation, and fentanyl regulation.
The TikTok dispute is also expected to be discussed. Trump has continued to pressure the Chinese-owned platform to sell its U.S. operations or face a nationwide ban. China is reportedly considering a temporary easing of rare earth mineral restrictions, while the U.S. is likely to delay a planned 100% tariff increase that was due to take effect on November 1.
Hope for De-escalation and Stability
During Trump’s first term, both nations imposed tariffs as high as 145% and 125%, escalating trade tensions worldwide. Later, negotiations in Switzerland led to a 115-point tariff reduction agreement.
Now, with the upcoming Busan talks, both governments are optimistic about reducing trade friction, stabilizing supply chains, and strengthening cooperation. If successful, the meeting could mark a significant step toward rebuilding trust and restoring stability in global markets.
