US and China Agree to Economic Cooperation, Aim to Calm global Markets
Busan, South Korea – following a nearly two-hour meeting in Busan, US President Donald Trump and Chinese President Xi Jinping signaled a commitment to de-escalate trade tensions and foster economic cooperation, with a stated goal of reassuring global economies. The meeting, held on the sidelines of the APEC summit, resulted in an immediate announcement from Trump regarding tariff reductions on Chinese goods.
The two leaders pledged to work together to promote a ceasefire in Ukraine, according to statements released after the summit. While the sensitive topic of Taiwan was deliberately excluded from the agenda, Trump had previously indicated he would only discuss it if raised by Xi jinping.
A key outcome of the meeting was Trump’s announcement of a reduction in tariffs imposed on China, initially set between ten and twenty percent, which had been linked to concerns over fentanyl trafficking. “We had an incredible meeting. I believe they will help us with fentanyl,” Trump stated upon his return to Washington aboard Air Force One.
Beyond tariffs, the meeting addressed crucial trade issues for the US, including Chinese imports of American soybeans. Trump announced that Beijing agreed to resume purchasing US soybeans, a trade that had been halted since May amidst the ongoing trade war. This is particularly important for the Trump governance, which draws substantial support from rural America.
Trump also expressed confidence that restrictions on rare earth exports from China – retaliatory measures taken by Beijing – had been lifted. China is the world’s leading supplier of these critical materials used in technology, energy, and defense industries.
Chinese President Xi Jinping, as reported by the Xinhua agency, confirmed the productive nature of the discussions. “the economic and trade teams of China and the United States held in-depth discussions and reached consensus on solutions to the problems,” he said.He further emphasized the need for swift follow-up action, stating, “The two teams must now improve and complete the follow-up work as quickly as possible, and present concrete results, in order to reassure the economies of China, the United States and the world.”
Despite a tense initial atmosphere – with Trump referencing a reunion with “a friend” – Xi acknowledged that ”cyclical frictions” are normal for the world’s two largest economies, while expressing confidence in their ability to “prosper together.”
The US delegation accompanying President Trump in Busan included Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, US Ambassador to China David Perdue, and trade emissary Jamieson Greer.
While Xi Jinping will continue on to the APEC summit in Gyeongju,South Korea,President Trump did not attend.
(w/ AFP, Reuters and Lusa)
