US President Donald Trump and Chinese leader Xi Jinping are set to meet for the first time since Trump's return to office, sparking hopes of a breakthrough in the long-standing US-China trade war. The meeting, which takes place during the Asia Pacific Economic Cooperation summit in Seoul, has been months in the making and could bring an end to global economic chaos.
The agenda for the talks includes rare earths, a critical mineral essential for US industries such as car manufacturing and military equipment. China's control over 70% of the world's mining and processing capacity has been a major bargaining chip, with Beijing increasing restrictions on exports citing national security concerns.
However, preliminary talks in Kuala Lumpur have shown that Beijing is willing to defer export controls in exchange for Washington freezing new semiconductor technology export restrictions. Such an agreement would benefit both economies but could also spark criticism from US hawks who fear it may damage the country's long-term security.
The US has been reliant on China for rare earths, and Japan, one of the few major economies that has actively worked to reduce its dependence on China, is seeking to follow a similar model. Trump's inconsistent stance on Taiwan support has also prompted reassurance from other administration members that the US will not abandon its ally.
The threat of a global trade war hangs over the talks, with tariffs imposed by both sides at levels that would have effectively amounted to a trade embargo between the world's two biggest economies. However, it appears that tariffs may be averted, and both leaders are keen to avoid returning to the high tariffs that were threatened earlier this year.
As Bonnie Glaser, managing director of the Indo-Pacific programme at the German Marshall Fund, notes, "Both leaders see themselves and their countries as being in a very strong position." Nevertheless, she adds, "Both want to avoid a return to the very high tariffs that they threatened each other with earlier this year."
The meeting also includes discussions on control of fentanyl and finalizing the TikTok deal agreed in Madrid. Apart from the specifics of any agreements, the talks will underline the potential for constructive dialogue between Trump and Xi. Glaser says that there is a growing recognition in the US that "mutually dependent coexistence may be beneficial," shifting the country's paradigm on China.
Ultimately, the outcome of the meeting will depend on the willingness of both sides to compromise and find common ground. If successful, it could bring an end to months of global economic chaos and pave the way for a more constructive relationship between the US and China.
The agenda for the talks includes rare earths, a critical mineral essential for US industries such as car manufacturing and military equipment. China's control over 70% of the world's mining and processing capacity has been a major bargaining chip, with Beijing increasing restrictions on exports citing national security concerns.
However, preliminary talks in Kuala Lumpur have shown that Beijing is willing to defer export controls in exchange for Washington freezing new semiconductor technology export restrictions. Such an agreement would benefit both economies but could also spark criticism from US hawks who fear it may damage the country's long-term security.
The US has been reliant on China for rare earths, and Japan, one of the few major economies that has actively worked to reduce its dependence on China, is seeking to follow a similar model. Trump's inconsistent stance on Taiwan support has also prompted reassurance from other administration members that the US will not abandon its ally.
The threat of a global trade war hangs over the talks, with tariffs imposed by both sides at levels that would have effectively amounted to a trade embargo between the world's two biggest economies. However, it appears that tariffs may be averted, and both leaders are keen to avoid returning to the high tariffs that were threatened earlier this year.
As Bonnie Glaser, managing director of the Indo-Pacific programme at the German Marshall Fund, notes, "Both leaders see themselves and their countries as being in a very strong position." Nevertheless, she adds, "Both want to avoid a return to the very high tariffs that they threatened each other with earlier this year."
The meeting also includes discussions on control of fentanyl and finalizing the TikTok deal agreed in Madrid. Apart from the specifics of any agreements, the talks will underline the potential for constructive dialogue between Trump and Xi. Glaser says that there is a growing recognition in the US that "mutually dependent coexistence may be beneficial," shifting the country's paradigm on China.
Ultimately, the outcome of the meeting will depend on the willingness of both sides to compromise and find common ground. If successful, it could bring an end to months of global economic chaos and pave the way for a more constructive relationship between the US and China.
. And what's with all these countries being like "I need to control my exports" 
. Can someone explain it in simple terms? Like, is it a super powerful magic rock or something 
? I just want to buy some new gaming controllers without breaking the bank 
. Is it really that hard for China and the US to work out some deal? 
. I mean, think about it - a trade war that's been dragging on for years is finally going to get some attention. And if they can work something out on rare earths, that'd be huge 
. But at the same time, I'm also a little skeptical - we've seen how inconsistent Trump has been when it comes to dealing with China 
. And let's be real, the US and China need each other - we can't keep relying on each other like it's some kind of toxic friendship 
. Maybe this meeting will mark the start of something new, not just in trade, but in how they interact with each other globally 
Anyway, it's been a long time coming, but I guess both countries need each other right now. If they can find some common ground on trade and stuff, maybe we'll avoid another global economic disaster 
but idk what to expect rn. I mean, both leaders are in a pretty strong position as Bonnie Glaser said... which is kinda good news? the thought of a global trade war was giving me anxiety 
has anyone else been stockpiling toilet paper like I have?! 
OMG, have you seen the stats on rare earths?! 
China controls 70% of the world's mining capacity, which is CRAZY! 
The US has imposed tariffs worth $365 BILLION, while China has retaliated with $110 BILLION in tariffs. That's like, whoa! 
They're like, "Hey, we can do it too!" 
And let's not forget, this is also about control of fentanyl and TikTok... 
But it's all about finding common ground now. If successful, this meeting could be the start of something beautiful. 
! I mean, think about it, no global trade war would be a total game changer 
! The fact that both Trump and Xi are willing to compromise is a big deal 
. It's not like they're going in blind or anything, the talks have been months in the making so they must see some potential for success 
.
. I mean, we've seen these talks stall before and it doesn't exactly fill me with confidence 
. Japan's trying to reduce its dependence on China too, which is a big deal for them 
- that whole situation has been super tense lately 
. If it works out, it could be a total win-win for both countries 
. Fingers crossed 
.
.
. One thing's for sure though - if Trump and Xi can find common ground, it could lead to some major breakthroughs in global trade and maybe even reduce the risk of a full-on trade war 
on the other hand, it's about time we saw some progress on that fentanyl thing, china's been killing us with that stuff for far too long 
and can we please just sort out tiktok already? 
and she was singing this silly song to our cat... now she's all grown up 
and have some decent coffee while we're at it 
️. seriously though, it's interesting that both leaders see themselves in a strong position... maybe they can use that to their advantage 
. but honestly, I'm more excited about the TikTok deal 
. Here's to a brighter future for both the US and China! 
. But at the same time, US industries like car manufacturing can't function without those minerals, and Japan is already trying to reduce its dependence on China 
. Let's hope Trump and Xi can find a middle ground that works for everyone 
. If they can avoid those high tariffs, it could be a game-changer for global trade