trump to โMeet with Xi Amidst Trade War Tensions, Potential Deal on the Horizon
Former President Donald Trump is set to meet with Chinese President Xi Jinpingโ tommorow in Gyeongju, South Korea, on the sidelines of the APEC economic summit. Thisโ meeting, once uncertain, signals a potential shift โin the ongoing trade war between the two nations.
The possibility of a meeting was previously โคcast into doubt earlier this month โขwhen Trump stated he saw “noโ reason” to meet Xi, โขciting 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, outliningโฃ a possible framework for a trade deal.
According to America reporter Raquel Schilder, Trump now sounds “positive” about the possibility of an agreement.โฃ However, she cautions that the specifics of any agreements reachedโ and their implementation timeline remain unclear, though the white House suggests further โmeetings between the twoโค leaders may occur.
The US and China have been locked in a trade dispute since the beginning ofโฃ 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 otherโฃ nations, like theโ Netherlands (as part of the EU), have โฃyielded to Trump’s tariff pressures, China appears prepared to withstand โฃeconomic hardship. Crucially, China โขholds a near-monopolyโค on โthe processing of rare earth metals – โขessential components in the production of smartphones, computers, satellites, and electric carโ batteries โฃ- giving them meaningful โleverage in the conflict.
A potential deal under discussion would see Xi agree to postponeโ export โrestrictions on theseโฃ strategically โcrucial raw materialsโ for one year. In โexchange,โข Trump has reportedly promised to refrain from implementing hisโฃ threatened ‘100 percent additional tariffs’ on China, scheduled to take โฃeffect November 1st.
Moreover, China โisโฃ expected โฃto resume purchasing American soybeans, a market โฃlargely lost to Brazil and Argentina due to the trade war, significantly impacting American soybeanโ farmers.
the European Union isโฃ also actively seeking access to Chinese rare earth metals, with a key meeting scheduled โfor 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 โrestrictions.
