Partial Agreements Between Washington and Beijing to Reduce Trade Tensions and Build Trust
On Thursday in Busan, U.S. President Donald Trump and Chinese President Xi Jinping announced a series of partial agreements aimed at reducing trade tensions between the two countries, particularly concerning tariffs, rare minerals, and agricultural trade. The two leaders renewed their commitment to stabilizing and strengthening bilateral relations.
This was the first direct meeting between the two presidents since 2019, coinciding with Trump’s return to the White House. The meeting took place on the sidelines of the 32nd APEC Economic Cooperation Forum in Gyeongju, South Korea. The summit marks the culmination of Trump’s Asian tour, which he described as a “great success,” announcing an official visit to China in April 2026.
Trump revealed that tariffs on Chinese products will decrease from 57% to 47%, and an agreement has been reached to resume U.S. soybean imports to China, while maintaining rare mineral exports. He also mentioned the strengthening of cooperation to combat illegal fentanyl trafficking, clarifying that some sensitive issues have not yet been raised for discussion.
In the technological realm, the U.S. president addressed NVIDIA’s sales of chips to China, indicating no significant progress, reminding that the authorized products do not include the most advanced artificial intelligence models.
For his part, Xi Jinping called for “ensuring the smooth sailing of the giant ship of China-U.S. relations,” noting that communication between the leaders has remained steady since Trump’s re-election. He affirmed that differences among major powers are normal, yet both countries can still achieve tangible accomplishments for the world.
Xi stated: “Facing winds and waves, we must maintain our direction and ensure the stability of our relations,” emphasizing the necessity of creating a favorable environment for mutual development.
It is noteworthy that previous tariff agreements, which will expire on November 10, had reduced U.S. counter-tariffs to 55% and Chinese tariffs to 10%. Beijing is currently demanding the lifting of a 20% tariff on products related to fentanyl and the easing of U.S. restrictions on exporting sensitive technologies.
This meeting comes amid a backdrop of escalating economic competition between Washington and Beijing, with efforts to rebuild constructive dialogue following years of trade and technological tensions. Since the onset of the trade war in 2018, relations between the two countries have oscillated between calm periods and episodes of friction over economic security and market access issues.
