Insight: Presidents Trump and Xi held their first face-to-face meeting in six years at the APEC summit in Busan, South Korea. The leaders struck a one-year trade truce that sees Washington reducing tariffs on Chinese goods from 57% to 47%, while Beijing agreed to resume large-scale purchases of American soybeans, postpone planned rare earth export restrictions, and enhance cooperation on combating fentanyl trafficking. The meeting concluded with plans for reciprocal visits: Trump to China in April 2026, followed by a Xi trip to the United States. Separately, US Treasury Secretary Scott Bessent announced that China has approved the transfer agreement for TikTok, while the details remain undisclosed.
Impact: After six turbulent months of tariffs, export curbs, threats and counter-threats, Trump’s “12 on a scale of 1 to 10” rating of the meeting and praise for Xi as “a great leader” provide positive signs that a bromance between the two leaders is being rekindled. The one-year framework offers capital markets much needed policy certainty, while scheduled state visits signal both leaders’ commitment to continued dialogue. Yet beneath the ‘ceasefire’, core issues -- including China’s manufacturing overcapacity, industrial policies, and US export controls on Nvidia chips -- remain unaddressed. What emerged from this highly anticipated meeting will take time to digest. Meanwhile, the world can enjoy some photos of the two presidents standing and smiling next to each other that are not AI-generated.
