Trump and Xi Hold First Summit in Six Years Amid Trade Tensions

The leaders of the world's two largest economies met in South Korea on Thursday, marking their first direct talks in six years. The high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping, held on the margins of the APEC Summit in Busan, aims to stabilize a relationship strained by months of escalating trade conflicts.

Their last face-to-face discussion was in 2019 at the G20 Summit in Osaka.

This week’s summit follows a period of intense economic hostility. Since returning to office in January, the Trump administration has imposed steep new tariffs on Chinese goods, sparking immediate retaliation from Beijing. Tensions flared again this month after China proposed expanding restrictions on its exports of vital rare-earth minerals, a sector it dominates. In response, President Trump threatened crippling 100% tariffs on Chinese exports and new restrictions on US software, measures that could severely impact the global economy.

Just before landing in Busan, President Trump also signaled a tougher stance on defense, stating the US would immediately step up nuclear weapons testing in response to China's growing arsenal.

Arriving at the summit, however, President Trump struck an optimistic and personal tone. "It's a great honour to be with a friend of mine," he remarked, noting they would have a "fantastic relationship for a long period of time." He also referred to the Chinese leader as a "very tough negotiator" but suggested a trade deal was possible.

President Xi, in his opening remarks, offered a more measured perspective. He acknowledged through an interpreter that the two nations "don't always see eye-to-eye," calling such friction "normal" for leading economies. He emphasized that both countries should "stay the right course."

"Over the years, I have stated in public many times that China and the United States should be partners and friends," Xi said, adding that he was "ready to continue working with" President Trump to build a "sound atmosphere" for their countries.

Xi also highlighted areas of global stability, commending President Trump's role in the US-brokered Gaza peace deal and the resolution of the Thailand-Cambodia border conflict. The Chinese leader stated that both nations can "jointly shoulder our responsibility" to address growing global challenges.

The formal talks include senior aides from both sides. The US delegation features Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer.

The agenda is set to address the ongoing tariff battle, technology export controls, and fentanyl trafficking. US officials have signaled that a reduction in some tariffs could be negotiated in return for Chinese cooperation on curbing the flow of fentanyl. White House sources indicate they hope this summit will be the first of several, signaling a lengthy negotiation process ahead.