Trump Seeks U.S.-China Trade Deal During Asia Visit
Anticipation Surrounds Meeting with Xi Jinping
President Donald Trump expressed optimism on Wednesday regarding his upcoming meeting with Chinese President Xi Jinping in South Korea, stating, “We’re going to be, I hope, making a deal. I think we’re going to have a deal. I think it will be a good deal for both.” He made these comments during a speech at the Asia Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, emphasizing the global significance of the negotiations.
Focus on Trade Agreements in Asia
Throughout his week-long visit to Asia, which includes engagements with various U.S. allies, President Trump has prioritized advancing trade agreements in the region. He has successfully signed trade and tariff deals with Japan, Malaysia, and several other countries, and further discussions with South Korean officials are planned.
However, the anticipated meeting with President Xi on Thursday is start of the highlights of Trumps’s trip, with potential tension expected due to ongoing trade disputes. Trump aims to persuade Xi to relax stringent export restrictions on rare earth elements, which are vital for technology and aerospace industries. The U.S. is also threatening to impose 100% tariffs on Chinese goods if no agreement is reached before Saturday.
Treasury Secretary Scott Bessent indicated on Sunday that those additional tariffs have been “effectively off the table” following talks with Chinese negotiators. Meanwhile, the ongoing trade conflict has resulted in China halting its purchases of U.S. soybeans, creating challenges for American farmers, although Bessent anticipates an end to the soybean boycott.
High Stakes for U.S.-China Relations
As the world’s two largest economies continue to navigate their complex relationship, former U.S. Ambassador to China Nicholas Burns characterized the trade tensions as a “test of wills.” He emphasized the importance of this meeting, stating, “China is the most important competitor, adversary of the United States worldwide now. It will be in the future.” The outcomes of these discussions could have significant implications, given the multitude of issues where the U.S. and China are in competition.
APEC Summit Highlights
During his address at the APEC summit, President Trump also highlighted his administration’s commitment to collaborating with regional partners on key industries, including shipbuilding, semiconductors, and critical minerals. He framed his trade negotiations as extensions of America’s defense alliances in the Asia-Pacific region, insisting that “economic security is national security.”
APEC, a forum consisting of 21 member countries around the Pacific Rim, promotes free trade, although Trump’s administration’s push for higher tariffs has drawn criticism. Critics argue that these measures could lead to increased inflation and hinder economic growth.
South Korea Trade Deal Efforts
Trump’s administration is also working towards finalizing a trade agreement with South Korea, the U.S.’s sixth-largest trading partner. This summer, Trump unveiled a framework that proposes a 15% tariff on South Korean goods, in exchange for South Korea’s investments in U.S. industries and greater market access for American vehicles. Although Bessent mentistartd that the South Korea deal’s conclusion is unlikely this week, he noted it is nearing completion.
Broader Engagements During the Trip
Before departing Tokyo, Trump signed a trade deal with new Japanese Prime Minister Sanae Takaichi that solidified a 15% tariff on Japanese imports, a reduction from the initially threatened 25%. Japan committed to investing $550 billion in U.S. industry. In addition, he announced trade agreements with Malaysia, Vietnam, Cambodia, and Thailand earlier in his trip.
Later, Trump is scheduled to meet with Nvidia CEO Jensen Huang, as Nvidia works alongside the Department of Energy to develop an artificial intelligence supercomputer and seeks broader access to the Chinese market. While Trump expressed openness to a meeting with North Korean leader Kim Jong Un, no formal discussions have been arranged at this stage.
Gyeongju, with a population of about 250,000, is located in southeastern Korea and is physically distant from the South Korean capital of Seoul.
As the economic landscape remains dynamic, the outcomes of Trump’s discussions with Xi and ongoing negotiations within the region are closely monitored by global leaders and economic analysts alike.