In a major development for global business and diplomacy, US President Donald Trump and China President Xi Jinping met in Busan, South Korea, on Thursday. Their face-to-face talks, the first in six years, signal a promising new chapter and a hopeful thaw in the strained relations between the world’s two biggest economies.
Key Agreements Bring Relief
The high-stakes meeting, held on the sidelines of the APEC Summit, resulted in some big wins for both sides, easing months of trade friction:
Tariff Cut: President Trump announced that the US will reduce some tariffs on Chinese imports. This comes as a major relief to companies that were struggling due to the high duties.
Soybean Deal: China has agreed to immediately resume large-scale purchases of US soybeans. This is a huge positive for American farmers who had been badly hit by the trade war.
Rare Earth Exports: A crucial agreement was reached on the export of rare earth minerals from China. Rare earths are essential for high-tech products like phones and fighter jets, and China had recently put curbs on their export. Trump confirmed this issue is now “settled” with a one-year deal.
Fentanyl Action: In exchange for the tariff reduction, President Xi promised to work “very hard” to crack down on the flow of precursor chemicals used to make the deadly drug, Fentanyl, into the US.
A ‘Fantastic’ New Chapter
Both leaders were seen shaking hands and exchanged polite words, setting a positive tone. President Trump called the meeting a “great success,” rating it a “12 out of 10.” President Xi, through an interpreter, also said the two countries had reached a “basic consensus” on trade and that it was “normal” for the two large economies to have some friction now and then. This breakthrough comes as both countries faced increasing pressure to stabilise ties, which were threatened by repeated tariff escalations and export restrictions. The agreements bring much-needed confidence to global markets and show a willingness from both Washington and Beijing to cooperate, rather than fight.
Deputy Editor, Prime Post
With an illustrious career spanning 29 years in the dynamic field of journalism, Anand Gantela is a seasoned professional who has made significant contributions to both print and electronic media. His wealth of experience reflects a deep understanding of the ever-evolving landscape of news reporting.
