After Meeting with the Chinese President.. Trump: Trade Agreement with China Very Soon

SadaNews - U.S. President Donald Trump stated that he believes he will sign a trade agreement with China very soon and intends to visit Beijing in April, following a summit with Chinese President Xi Jinping in South Korea.

The president added to reporters aboard Air Force One that there are no obstacles regarding rare earth metals, noting that all issues related to rare earth minerals have been resolved, according to Bloomberg.

Trump further stated that he held a "great meeting" with his Chinese counterpart, and that he will reduce tariffs on fentanyl from 20% to 10% effective immediately. He said, "I believe he (Xi) will make a great effort to stop the killing that comes into our country."

Results of Trump and Xi's Meeting

Trump said they reached several agreements to ease trade tensions, and that Xi agreed to resume purchasing soybeans. "We have - I believe it is a tremendous set of decisions... We made a lot of decisions," according to the U.S. president.

He added that they also discussed the issue of Nvidia Corp's chips entering the Chinese market, but he noted he would not grant access to its most advanced chips known as "Blackwell."

Under the agreement, China will suspend its licensing system for exporting rare earth elements for at least a year. "There are absolutely no obstacles regarding rare earth elements," according to Trump, who added, "We hope this disappears from our vocabulary for some time."

The president said he expects to be able to extend those restrictions for a longer period, announcing his intention to visit China in April, with Xi to visit the United States later next year.

The two presidents also agreed to cooperate on the Ukraine issue, stating they would remove tariffs and costs imposed on shipping. Trump mentioned that they did not address the Taiwan issue during their approximately 90-minute meeting.

Calming the Trade War

Trump and Xi concluded their highly anticipated summit after about an hour and a half on Thursday, wrapping up discussions they hoped would ease a broad trade showdown that has shaken global markets.

Xi and Trump were seen shaking hands at the end of the talks before walking together out of the meeting at an airbase in Busan, South Korea, on the sidelines of the Asia-Pacific Economic Cooperation summit. After the talks, Trump departed aboard Air Force One back to Washington while Xi continued on to attend the "APEC" summit.

Trump Expected a "Very Successful" Meeting at the Start of the Talks.

Xi and Trump were expected to finalize the details of a framework agreement negotiated over the weekend in Malaysia, which involves China suspending its rare earth licensing system for at least a year, resuming its purchase of U.S. soybeans, and making progress in combating fentanyl, in exchange for lowering U.S. tariffs and possibly other concessions.

Trump stated, "I believe we have already agreed on a lot of things, and we will agree on more now," adding that he believes completion of the deal is possible. He continued, "I think we will establish a great relationship for a long time to come."

Xi told Trump that he felt "very warm upon seeing him again," and added that he is ready to continue working with him to build a solid foundation for U.S.-China relations.

Natural Economic Tensions Between the World's Largest Economies

Xi explained: "It is not necessary for us to always agree, and it is natural for the largest economies in the world to face some tensions from time to time." "In the face of winds, waves, and challenges, you and I, at the helm of China-U.S. relations, must keep on the right path and ensure the smooth sailing of the giant ship of relations between China and the United States."

The two leaders praised each other at the opening of the meeting, with Trump describing Xi as an "extremely tough negotiator" and a "great leader of a great country."

Xi praised Trump’s efforts to resolve global disputes, including in Gaza and Southeast Asia, affirming that the two countries can "share their responsibilities as major powers and work together to achieve more" for peace. The Chinese leader also amicably referenced Trump's famous campaign slogan, stating, "I always believe that China's development goes hand-in-hand with your vision of making America great again."

Ending Trade Maneuvers Between China and the U.S.

These results are expected to contribute, at least for now, to ending months of trade maneuvers during which the two largest economies in the world exchanged repeated threats to impose a series of tariffs and restrictions on each other's exports.

However, the outcomes are likely not to rise to the level of a comprehensive agreement addressing the core issues in the economic competition between the U.S. and China.

Many of those present at Trump and Xi's meeting table participated in previous rounds of negotiations. From the U.S. side, the table included U.S. Trade Representative Jamison Green, Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio, Treasury Secretary Scott Betsent, White House Chief of Staff Suzy Wiles, and U.S. Ambassador to China David Perdue.

On the Chinese side, Vice Premier He Lifeng, Tsai Chi head of the Secretary of State, Foreign Minister Wang Yi, head of the National Development and Reform Commission Cheng Shan Jie, Minister of Commerce Wang Wentao, and Deputy Foreign Minister Ma Zhaoxu attended.

Details of the U.S.-China Agreement

Details of the framework agreement began to emerge gradually in the days following the talks in Malaysia, indicating that Xi may have obtained significant relief on tariffs in exchange for temporary concessions.

On Wednesday, Trump predicted he would reduce the 20% tariffs he imposed on Chinese goods due to the export of chemicals used to produce fentanyl, indicating that Beijing may be able to secure a tariff rate on many goods that maintains its competitiveness compared to other regional industrial competitors.

Nvidia Chips

This reduction will be implemented along with the cancellation of a plan for a 100% tariff that the Trump administration had threatened to impose on November 1, as well as restrictions on exporting a wide range of critical software. The Trump administration is expected to remove tariffs and surcharges imposed on Chinese vessels.

The president also hinted that he would likely abandon the investigation into whether China is complying with a broader trade agreement dating back to his first term in office.

China is also planning to pressure Washington to retract a rule that subjects affiliate companies owning publicly traded firms on its blacklist with at least a 50% stake to the same restrictions imposed on the sanctioned parent company. This regulation has imposed additional obligations on exporters concerning verification and stringent inspection before export.

On Wednesday, Trump introduced a new element into the talks, indicating his readiness to discuss access to Nvidia's main AI processor known as "Blackwell." This would represent a significant concession and is likely to anger national security hawks in Washington.

Rare Earths

The most significant concession from the Chinese side is a promise to postpone expanding the rare earth licensing system for at least a year, with a commitment to reevaluate the program during that period.

Beijing has used these restrictions as leverage in trade talks, threatening to restrict U.S. and allied companies' access to vital minerals necessary for advanced technological manufacturing of smartphones, aircraft engines, and other widely used products.

Soybeans

China is also resuming its soybean purchases, having booked shipments of at least two loads of the U.S. crop, marking its first known purchase this season, according to people familiar with the matter. This represents a political victory for Trump, who has seen farmers in his electoral base struggle to offload agricultural surpluses.

Xi is also expected to agree to a deal for the sale of "TikTok's" operations in the United States, owned by "ByteDance," to a coalition formed by the Trump administration.

Trump has credited the app for boosting his popularity among young voters and helping him return to the White House.

Trump is expected to press Xi to reduce support for Russia in its war against Ukraine, where U.S. officials have outlined plans to discuss a global peace treaty. Washington may ask Beijing to limit the sale of so-called dual-use goods.

Recently, Trump indicated a drop in China's purchases of Russian oil following U.S. sanctions against Russian firms. However, forecasts suggest that China will not undertake serious intervention, having grown closer to Moscow since the invasion of Ukraine.

The Taiwan Issue

For his part, Trump expressed determination before the meeting to exclude the Taiwan issue from discussions, despite recently stating that the self-governing island is Xi's "eye candy."

China has sought a formal declaration from the United States stating that it "opposes" Taiwan's independence, rather than just having U.S. officials say that they "do not support" such a move.