by Our Correspondent in Seoul
Chinese President Xi Jinping and U.S. President Donald Trump began a high-stakes summit in Busan, South Korea, on Thursday, as investors and global observers looked for signs of easing tensions in the long-running U.S.-China trade war.
In their opening remarks, both leaders struck a conciliatory tone. Trump praised Xi as a “great leader of a great country,” expressing confidence the two would maintain “a fantastic relationship for a long time.” Xi responded by emphasizing stability in bilateral relations despite periodic friction. “China’s development goes hand in hand with your vision to make America great again,” Xi said. “I am ready to continue working with you to build a solid foundation for U.S.-China relations.”
Xi also highlighted Trump’s “enthusiasm for settling various regional hotspot issues,” citing Gaza and the Thailand-Cambodia dispute, and called for deeper cooperation to achieve “significant, practical, and beneficial” outcomes for both nations and the world.
The meeting — their first face-to-face encounter in six years — began shortly before 11 a.m., according to China’s state broadcaster CCTV. Both leaders posed briefly for photographs before entering closed-door talks. Trump was joined by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick, while Xi was accompanied by senior officials including Cai Qi, Foreign Minister Wang Yi, and Vice Premier He Lifeng.
Trade tensions dominate
The summit, held on the sidelines of the APEC meetings, comes amid renewed strain over tariffs, export controls, and technology restrictions. Trump’s tariff policies have drawn firm resistance from Beijing, sparking a trade conflict that now spans rare earths, soybeans, artificial intelligence chips, and the social media giant TikTok.
China recently announced sweeping export restrictions on rare-earth minerals and other key materials, set to take effect November 8. Trump countered with threats of 100% tariffs on Chinese imports, while both sides imposed new port fees on each other’s shipping vessels.
Tensions, however, appeared to ease in recent days following talks in Kuala Lumpur, where trade negotiators reached a “framework” or “preliminary consensus” on key issues. Trump hinted Wednesday that the U.S. may lower its 20% fentanyl-related tariff on Chinese goods and consider allowing China access to Nvidia’s advanced Blackwell AI chips — a potential breakthrough for tech cooperation. Nvidia’s market capitalization hit a record $5 trillion the same day.
Chinese officials have been more restrained, with the Foreign Ministry confirming only that Xi and Trump would discuss “issues of common concern.” Meanwhile, Reuters reported that a Chinese state firm recently made its first soybean purchase from the U.S. this year — a modest but symbolic gesture toward easing trade tensions.
The current tariff truce is due to expire on November 10, though both leaders are widely expected to extend it. Trump reiterated Wednesday that he was confident of reaching a “good deal” with Xi.
Global markets react
Global markets rallied in anticipation of progress at the summit. China’s Shanghai Composite Index hit a 10-year high Wednesday, while U.S. futures pointed upward ahead of the Busan meeting. Still, analysts warned that deeper strategic competition between the world’s two largest economies is unlikely to subside soon.
“The mood is positive, but the structural rivalry remains,” said one Seoul-based economist. “Even if tariffs are paused again, both countries are positioning for a longer-term contest in technology and global influence.”
Security and regional issues
Observers are also watching closely for signs of how the leaders handle sensitive geopolitical topics, including Taiwan and the South China Sea. Secretary of State Rubio recently rejected speculation that Washington might soften its Taiwan stance for trade concessions, reaffirming U.S. support for the island’s autonomy.
Beijing’s latest five-year plan proposals have underscored its pledge to “advance the great cause of national reunification” and “crack down on ‘Taiwan independence’ forces.” Trump, however, appeared to downplay the issue en route to South Korea. “There’s not that much to ask about it. Taiwan is Taiwan,” he told reporters.
Trump is scheduled to depart South Korea later Thursday, wrapping up an Asia tour that also included stops in Malaysia for the ASEAN summit and Japan for talks with new Prime Minister Sanae Takaichi. Xi will remain in South Korea through Saturday to attend the APEC leaders’ meeting and is expected to meet Takaichi separately on Friday.
