Trump and Xi Set for Critical APEC Summit Meeting After Six-Year Gap: Trade Tensions and Economic Cooperation on Agenda

US President Donald Trump and his Chinese counterpart Xi Jinping are set to meet in Busan

After a six-year hiatus, US President Donald Trump and Chinese President Xi Jinping are scheduled to meet Thursday in Busan during the Asia-Pacific Economic Cooperation (APEC) summit, a crucial encounter taking place amid growing trade tensions and global economic instability.

The two leaders haven't met face-to-face since Trump's first administration. According to US officials, this renewed engagement aims to reconstruct a delicate trade relationship that has deteriorated in recent months. Both nations enter discussions cautiously yet optimistically, with Washington expressing desire for a "substantial framework" to stabilize bilateral relations.

US Treasury Secretary Scott Bessent has indicated that negotiators have been working to postpone China's planned restrictions on rare-earth mineral exports, which could impact industries globally. As a reciprocal gesture, Beijing is expected to resume purchases of US soybeans, a symbolic act of goodwill toward American agricultural interests.

The previously dormant trade conflict reignited earlier this month when Beijing proposed comprehensive restrictions on rare-earth exports, materials essential for high-tech products and defense applications. Trump responded by threatening 100% tariffs on Chinese exports and potential restrictions on goods made with US software destined for China – measures economists warn could disrupt global supply chains.

Despite strong rhetoric, Trump has shown optimism about reaching an agreement, expressing hope to reduce tariffs if Beijing agrees to control precursor chemicals used in fentanyl production, the synthetic opioid fueling America's overdose epidemic.

Beyond tariffs and trade matters, the Trump-Xi discussions may address TikTok, the Chinese-owned platform facing a US ban unless its parent company divests American operations. Trump has suggested a final agreement on this issue could be signed directly with Xi.

The White House has suggested this week's meeting could initiate a series of encounters in the coming year, potentially including reciprocal visits, indicating both sides anticipate extended negotiations rather than a single summit resolution.

Many previous tariff and rare-earth agreements between Washington and Beijing will expire on November 10, adding urgency to current diplomatic efforts. These arrangements had previously reduced retaliatory tariffs to approximately 55% on the US side and 10% on China's, while restoring the flow of rare-earth magnets crucial for industries ranging from automotive to military aviation.

Beijing seeks tariff reductions, relief on export controls for US technology, and elimination of new port fees imposed on Chinese vessels.

The Busan meeting concludes Trump's five-day Asian tour, during which he established agreements with Japan and Southeast Asian nations aimed at diversifying rare-earth supply chains and decreasing dependence on China.

However, the broader context remains complex. Taiwan tensions persist, with Chinese state media recently highlighting H-6K bomber exercises near the island. The US has reaffirmed its commitment to Taiwan's defense, with Secretary of State Marco Rubio assuring that Washington won't compromise security interests while pursuing economic agreements.

Beijing adopted a conciliatory tone before the meeting. China is willing to collaborate for "positive results," foreign ministry spokesperson Guo Jiakun stated Wednesday.