US President Donald Trump recently met with Chinese President Xi Jinping on the sidelines of the APEC summit in Busan, South Korea, marking their first meeting in six years. According to Trump, the meeting will pave the way for lasting peace between the two nations. The leaders reportedly reached a consensus to resolve major trade issues, with China agreeing to suspend its latest rare-earth export controls in exchange for reciprocal US tariff cuts.
The agreement includes a US pledge to reduce tariffs on Chinese imports from 57% to 47% and suspend investigations into Beijing’s maritime and logistics sectors. Additionally, the US will lower fentanyl-related tariffs, while China adjusts its retaliatory measures. Beijing has also agreed to lift its rare-earth export restrictions for one year, allowing for the export of materials used in electronics and military technology.
The meeting comes after years of strained bilateral relations due to trade tensions, which began when Trump imposed sweeping tariffs on Chinese goods during his first term. The new deal also includes China’s resumption of purchases of US soybeans and other agricultural products, which were paused during the recent trade standoff. However, most other trade restrictions remain in place.
The rare-earth export restrictions were imposed by China after the US tightened its controls on exports of advanced semiconductors and chipmaking equipment. The move is seen as a significant step towards easing trade tensions between the two nations. Trump took to social media to express his optimism about the meeting, stating that it will lead to “everlasting peace and success” between China and the US.
The agreement marks a significant development in the trade relations between the two countries, with potential implications for the global economy. As the world’s two largest economies, the US and China have a significant impact on international trade and commerce. The easing of trade tensions between the two nations is likely to have a positive effect on global markets and trade relations. The next steps in implementing the agreement and its long-term implications remain to be seen.