Trump and Xi Jinping Meeting Rekindle Hopes for US-China Trade Truce
In a high-stakes summit held in Busan, South Korea, Presidents Donald Trump and Xi Jinping have signaled a potential thaw in the frosty US-China trade relations. This meeting, hailed by Trump as a great success,
has raised hopes for an easing of tensions between the world's two largest economies. However, the summit has also sparked concerns over the omission of critical issues such as Taiwan and Ukraine.
Background and Context
The meeting between Trump and Xi, which took place at the Gimhae Air Base in Busan, South Korea, was the first face-to-face negotiation between the two leaders since Trump's return to the White House. This meeting followed a phone call on September 19 that seemed to reaffirm a truce between the two powers.
Key Developments and Agreements
The US and China agreed to dial down trade tensions, with significant progress made on various contentious trade issues. Trump agreed to reduce America's fentanyl-related tariffs on China by 10 percentage points and cut the overall tariff rate on Chinese imports from 57 per cent to 47 per cent. In return, Beijing agreed to buy 12 million metric tons of soybeans this year and at least 25 million annually through 2028, a key issue for anxious US farmers. Also, China decided to suspend its latest rare-earth export controls for a year.
The silence on Taiwan, a contentious issue that has been a staple in past China-US summits, has sparked speculation that both leaders have reached a pragmatic understanding to deprioritize the issue. However, this has led to concerns, as tensions over Taiwan have only deepened in recent years.
Implications and Reactions
The summit has been generally viewed as a step towards stability and peace. My G2 meeting with President Xi of China was a great one for both of our countries,
Trump wrote on Truth Social on Saturday. This meeting will lead to everlasting peace and success. God bless both China and the US.
However, some experts have expressed concerns over the long-standing structural issues between the US and China. They argue that despite the temporary ceasefire, both nations remain on a path of confrontation over critical issues.
Marco Rubio, the Secretary of State, reassured that the US's commitment to Taiwan would not change amid the trade talks. I don't think you're going to see some trade deal where, if what people are worried about is we're going to get some trade deal, or we're going to get favorable treatment on trade in exchange for walking away from Taiwan,
Rubio said.
Conclusion and Current Status
Despite the positive developments, it is clear that the summit has not completely resolved the strategic competition between the US and China. The leaders' decision to deprioritize certain issues like Taiwan and Ukraine has only added to the complex dynamics of the US-China relationship. However, the agreements reached in this meeting signal a temporary ease in tensions, offering a glimmer of hope for a more stable phase in the relationship between these two global powers.