U.S. President Donald Trump kicked off a meeting with China’s leader Xi Jinping at a South Korean air base on Thursday optimistic about striking a trade-war truce between the world’s two largest economies.
The talks in the southern port city of Busan, their first face-to-face meeting since 2019, mark the finale of Trump’s whirlwind trip around Asia in which he has touted several trade breakthroughs with South Korea, Japan and Southeast Asian nations.
“We are going to have a very successful meeting, I have no doubt. But he is a very tough negotiator,” Trump said as he shook hands with Xi, who showed little emotion as Trump told reporters the pair might sign a trade deal on Thursday.
As they sat down with their delegations to begin talks, Xi told Trump via a translator it was normal for the two leading economies of the world to have frictions now and then.
A few days ago, trade negotiators for both countries reached a “fundamental consensus on addressing each other’s primary concerns,” Xi said. “I am willing to continue working with President Trump to lay a solid foundation for China-U.S. relations,” he added.
China’s yuan currency rose to a near one-year high against the dollar as investors hoped for an easing of trade tensions that have rocked global business. World stock markets from Wall Street to Tokyo have hit record highs in recent days.
Trump has repeatedly talked up the prospect of reaching agreement in his meeting with Xi, taking place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, since negotiators from both sides appeared to reach an understanding in Kuala Lumpur on Sunday.
But with both countries increasingly willing to play hardball over areas of economic and geopolitical competition, many questions remain about how long any trade detente may last.
The trade war reignited this month after Beijing proposed dramatically expanding curbs on exports of rare-earth minerals vital for high-tech applications, a sector China dominates.
Trump vowed to retaliate with additional 100% tariffs on Chinese exports, and with other steps including potential curbs on exports to China made with U.S. software – moves that could have upended the global economy.
