On Thursday morning, local time, US President Trump met with Chinese Communist Party leader Xi Jinping at the K-1 Air Base in Busan, South Korea. Information released after the meeting indicated that there were loosened discussions on tariffs, postponement of key issues such as rare earth controls, and no mention of the Taiwan issue. Experts pointed out that this meeting was a temporary truce between the two sides, with China employing a strategy of delay, but Trump not likely to be genuinely swayed, thus the US-China long-term confrontation remains unchanged.
The meeting between Trump and Xi primarily focused on trade, tariffs, fentanyl, rare earth, and other issues. Although no trade agreement was announced, Trump mentioned that they had reached consensus on many issues. He hinted that a trade deal would be signed soon, with no major hurdles expected.
Trump also mentioned that China is willing to address the fentanyl issue, and as a result, the 20% tariff levied by the US on Chinese goods related to fentanyl will immediately be reduced to 10%. Additionally, China will purchase a significant amount of soybeans and other agricultural products, delay the implementation of rare earth export controls for a year, and reduce the import tariffs imposed by the US on Chinese goods from 57% to 47%.
Discussions regarding the acquisition of TikTok and human rights issues in China did not seem to have been touched upon. Trump clarified that the Taiwan issue was not raised during the talks.
According to Trump, China will increase its investments in the US, and reciprocal visits between Trump and Xi are planned. Furthermore, the US Trade Representative, Jamie Green, mentioned during the briefing that the US would postpone its investigation into China’s shipbuilding industry.
On the same day, Trump posted on the social media platform Truth Social, stating that China had agreed to begin purchasing US energy.
The meeting touched on issues related to Ukraine and denuclearization of the Korean Peninsula, but no specific agreements were announced.
Su Ziyun, Director of the Institute of Strategic Studies and Resources at the Taiwan Institute for National Defense Security, expressed that the Trump-Xi meeting seemed relatively smooth on the surface, signaling a period of stability in the Indo-Pacific conflict and a temporary relaxation in the US-China trade war.
Su noted that it was akin to a temporary ceasefire, with both sides holding their fire. He mentioned that the rare earth issue is now buffered for a year, and after that period, various strategies will be employed. Beijing still aims to use rare earths as a bargaining chip when necessary, but Western countries are swiftly looking to reduce their reliance on China for rare earths. Su also highlighted that Trump had discussions with several Southeast Asian countries regarding rare earth supply before engaging Western countries to establish their rare earth plants.
Sun Guoxiang, a professor at the Department of International Affairs and Business at Nanhua University in Taiwan, stated that the outcomes of the meeting align with China’s previous strategy of delay tactics, making concessions on low-cost, negotiable issues while buying time on core strategic matters.
Sun believes that under internal economic pressures and external sanctions, China is seeking brief relief by making concessions on “soft issues” like tariffs and agricultural products in exchange for temporary breathing space. He added that despite Trump’s optimistic stance, this seems more like a “temporary band-aid” rather than a true breakthrough in negotiations.
According to Trump’s briefing, he discussed the issue of NVIDIA chips sales to China with Xi Jinping, but Trump clarified that the meeting did not touch on the latest NVIDIA Blackwell chip sales matter to China.
Prior to the Trump-Xi meeting, former US Deputy National Security Advisor, Matthew Pottinger, published an article titled “Is Trump Getting Played by Xi?” emphasizing that the US-China technological and geopolitical competition has reached a critical juncture. Pottinger warned that approving NVIDIA’s sale of the Blackwell B30A chip to China could potentially propel China to the forefront of the technological race.
Su Ziyun stated that the US cannot afford to let China acquire cutting-edge chips in AI strategy and, at most, could supply second or third-tier chips. While China has made progress in software development, it remains heavily reliant on US hardware technology.
Trump rated the meeting a 12 out of 10. According to Reuters, Trump and Xi exchanged compliments at the opening of the meeting, with Xi praising Trump for addressing regional hotspots, indicating a favorable exchange of pleasantries.
Xinhua News Agency released several short reports with Xi stating, “In the face of storms and challenges, President Trump and I, as helmsmen, should steer in the right direction, command the overall situation, and ensure the smooth sailing of the US-China relationship.”
Sun Guoxiang suggested that the mutual praise between the two leaders, on the surface, appears to be a display of etiquette but in reality serves their respective interests.
Su Ziyun pointed out that Trump is unlikely to be swayed by China’s tactics. He highlighted Trump’s sudden order to the Pentagon to resume nuclear weapon testing ahead of the meeting as a clear sign.
Su analyzed Trump’s actions, noting that in the first year of his presidency, he initiated tariff competitions to accelerate progress. Subsequently, he compromised, displaying a less assertive stance during discussions with Japanese and South Korean leadership, even agreeing to South Korea’s request to build nuclear submarines. Su predicted that the second year of Trump’s presidency would focus on consolidating relationships with allies and intensifying efforts to counter China.
Experts previously analyzed by Dajiyuan had highlighted that due to the structural confrontation between the US and China, any agreements reached between the two countries are unlikely to be long-lasting.
Sun mentioned that the postponement of China’s rare earth export controls and the tentative nature of the trade agreement signified a high level of uncertainty. He emphasized that technology, ideology, and geopolitics remain fundamental contradictions between China and the US, with both sides engaging in strategic delays. Developments in alliances such as the US-Europe, China-Russia, the Indo-Pacific Alliance, and the Taiwan Strait situation could shift the focus of negotiations at any time. Despite the seemingly friendly atmosphere at the Trump-Xi meeting, it appeared more like a diplomatic painkiller—a temporary relief that couldn’t alter the long-term structure of confrontation.