President Donald Trump announced that he has reached agreements with China following a meeting with Chinese leader Xi Jinping on October 26, 2023. This meeting took place in Busan, South Korea, marking the conclusion of Trump’s five-day trip across Asia. The discussions aimed to address escalating trade tensions between the world’s two largest economies.
The one hour and forty-minute conversation focused on key agenda items, including tariffs, technology trade, and rare earth minerals. Trump expressed optimism, stating that he expected to finalize a deal with Xi. The urgency for a resolution stemmed from Trump’s aggressive tariff policies and China’s retaliatory measures on exports of rare earth elements, which are critical for various industries.
In the aftermath of the meeting, Chinese officials did not immediately comment on the outcomes. A significant point of contention remains the tariffs related to fentanyl, which China perceived as a breach of trust, especially given its cooperation with the Biden administration on controlling the drug’s precursors.
Details from the Meeting
Trump and Xi’s meeting on Thursday was reminiscent of their previous encounters, both in duration and significance. Their last face-to-face meeting occurred six years ago during the Group of 20 summit in Osaka, Japan, where discussions were similarly focused on trade and economic cooperation.
Despite Trump’s positive remarks to reporters aboard Air Force One, markets reacted skeptically. After the meeting, share prices in China dropped, with the Shanghai Composite index decreasing by 0.7%, and Japan’s Nikkei 225 index falling by 0.3%. The decline extended to U.S. futures and oil prices, highlighting investor concerns about the effectiveness of the discussions.
During his return flight, Trump also addressed other topics, including nuclear testing. He implied that the U.S. may need to resume testing in response to missile tests conducted by other countries. Trump stated, “We have more nuclear weapons than anybody. We don’t do testing,” clarifying that the U.S. has not conducted a nuclear explosion test since 1992.
Future Trade Relations and Meetings
Trump indicated that the tariff rate on Chinese exports would be adjusted from 57% to 47% following China’s commitment to assist in reducing the flow of fentanyl ingredients. He also mentioned that discussions would continue with Nvidia, a leading chipmaker, regarding the supply of computer chips to China.
Looking ahead, Trump announced plans to visit China in April 2024, with Xi expected to reciprocate by visiting the U.S. The president emphasized the need for collaboration on various international issues, including the ongoing conflict in Ukraine, although he acknowledged the challenges in mediating between the involved parties.
In a separate development, Trump dined with Canadian Prime Minister Mark Carney during his trip, hinting at a potential thaw in U.S.-Canada relations, which have been strained over trade disputes.
As Trump concluded his Asia trip, he reiterated that no discussions were held regarding Taiwan, despite prior speculation on the topic. He stated, “Taiwan never came up,” indicating a focus on trade rather than geopolitical tensions.
With his return to Washington, Trump expressed satisfaction with the outcomes of his discussions with Xi, rating the meeting a “12” on a scale of 1 to 10. The implications of this meeting may resonate in the economic strategies of both nations as they navigate their complex relationship moving forward.
