trump to Meet with Xi Amidst Trade War Tensions, Potential Deal on the Horizon
Former President Donald Trump is set to meet with Chinese President Xi Jinping tommorow in Gyeongju, South Korea, on the sidelines of the APEC economic summit. This meeting, once uncertain, signals a potential shift in the ongoing trade war between the two nations.
The possibility of a meeting was previously cast into doubt earlier this month when Trump stated he saw “no reason” to meet Xi, citing the Chinese government’s “unfriendly” stance on trade. However, recent talks held in Malaysia this weekend appear to have paved the way for a renewed dialog, outlining a possible framework for a trade deal.
According to America reporter Raquel Schilder, Trump now sounds “positive” about the possibility of an agreement. However, she cautions that the specifics of any agreements reached and their implementation timeline remain unclear, though the white House suggests further meetings between the two leaders may occur.
The US and China have been locked in a trade dispute since the beginning of the year, initiated by trump’s accusations of china’s “disrespect” for the global economy and unfair trade practices, including government subsidies and the dumping of cheap products.Both countries have imposed historically high tariffs on each other’s goods, increasing export costs.
While other nations, like the Netherlands (as part of the EU), have yielded to Trump’s tariff pressures, China appears prepared to withstand economic hardship. Crucially, China holds a near-monopoly on the processing of rare earth metals – essential components in the production of smartphones, computers, satellites, and electric car batteries - giving them meaningful leverage in the conflict.
A potential deal under discussion would see Xi agree to postpone export restrictions on these strategically crucial raw materials for one year. In exchange, Trump has reportedly promised to refrain from implementing his threatened ‘100 percent additional tariffs’ on China, scheduled to take effect November 1st.
Moreover, China is expected to resume purchasing American soybeans, a market largely lost to Brazil and Argentina due to the trade war, significantly impacting American soybean farmers.
the European Union is also actively seeking access to Chinese rare earth metals, with a key meeting scheduled for tomorrow in Brussels between EU diplomats and a Chinese delegation. European companies, particularly those in the automotive, energy, and chemical industries, are also feeling the impact of china’s export restrictions.
