BUSAN (South Korea): US President Donald Trump announced on Thursday that he had reached a new deal with Chinese President Xi Jinping to ease trade tensions, including a reduction in tariffs, renewed Chinese purchases of US soybeans, and a one-year agreement ensuring the flow of rare earth exports.
The breakthrough came after nearly two hours of face-to-face talks between the two leaders on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Busan — their first meeting since 2019. The session marked the conclusion of Trump’s whirlwind Asia tour, during which he also highlighted trade successes with South Korea, Japan, and Southeast Asian nations.
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Speaking aboard Air Force One, Trump said the rare earths agreement — critical to global technology supply chains — would be extendable annually. “All the rare earths have been settled, and that’s for the world,” he said, calling the meeting with Xi a “great success.” He also announced plans to visit China in April, with Xi expected to make a return visit to the United States later in the year.
Following the announcement, Chinese stocks soared to decade highs while the yuan strengthened to near a one-year peak, as global markets reacted positively to the news. The easing of tensions sparked optimism among investors after years of trade friction that had disrupted supply chains and dampened business confidence worldwide.
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However, analysts warned that despite the apparent detente, deep economic and geopolitical differences between Washington and Beijing persist, raising uncertainty over the long-term stability of the new agreement.