U.S. President Donald Trump and Chinese President Xi Jinping held their first in-person meeting in six years on Thursday, October 30, in the South Korean port city of Busan.
This marks a significant moment in efforts to ease the escalating tensions between the two major powers of the world.
The 100-minute summit, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum, where extensive issues like trade tariffs, rare earth minerals, fentanyl precursor chemicals, semiconductors, and stances on Ukraine have been discussed.
Both sides confirmed progressive talks and promised to continue talks on these matters.
Following the meeting, Trump called these discussions “amazing,” responding to the reporters aboard Air Force One and claimed that the leaders “agreed to almost everything.”
Major takeaways of the meeting of the two significant economies are:
The most tangible outcome is the mutual agreement on the reduction of tariffs and rare earth elements. Trump announced a reduction of tariffs on Chinese goods from 57% to 47%. In exchange, China pledged to lift restrictions on exports of rare earth elements. These rare Earths are highly significant for advanced technologies including electric vehicles (EVs), smartphones, and most importantly defense equipment.
While discussing this, Trump mentioned, “All of the rare earth has been settled.”
“That roadblock is gone now,” he added.
Previously, China put strict restrictions on the export of rare earth minerals as Beijing controls 80% of global earth mining and 90% of processing in response to US new tariffs.
During the meeting, China also announced resuming large-scale purchases of U.S. soybeans. Trump stated, “This has been one of the most contentious issues of the trade war.”
“We’re bringing back business to our farmers,” he added.
This announcement is welcomed by American farmers who have been hit hard by years of retaliatory tariffs.
The U.S. president stated Xi had agreed to “work very hard” to cease the flow of chemicals used in manufacturing fentanyl. Fentanyl is a synthetic opioid fueling a deadly crisis across U.S. cities.
In response to that, Trump as a goodwill gesture reduced the tariff on Chinese products related to fentanyl from 20% to 10%.
Another positive outcome is the semiconductor exports and Nvidia’s sales to China. Trump asserted that the U.S. would continue to limit China’s access to the company’s most advanced “Blackwell” AI chips but signified openness to enabling the sale of less-sensitive components.
Despite growing tension, both political leaders didn’t discuss Taiwan during the meeting. However, both agreed to “worth together to see if we can get anything” related to the ongoing war in Ukraine.
Xi maintained a warmer tone during his opening remarks and described Trump as “a friend of the Chinese people,” and further maintained a conciliatory tone by stating that two nations are “partners, not rivals.”
Chinese state media also reassured the President's statement, saying the talks “opened a new chapter of mutual respect and cooperation.”
Trump shared that he is scheduled to visit China in April 2026, with Xi also lined up a reciprocal visit to the U.S. later in the year.
“We have a deal,” Trump said, adding that “every year we’ll negotiate a deal.”