President Donald Trump is set to embark on a five-day Asia trip that includes key meetings with Chinese leader Xi Jinping. Prior to meeting with Xi, Trump plans to seek economic agreements and key mineral deals with trade partners as a central leverage point in pressuring China.
During this trip, President Trump will attend the Association of Southeast Asian Nations (ASEAN) Summit in Malaysia, visit Japan, participate in the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea, and have a face-to-face meeting with Xi Jinping on the sidelines of APEC.
Before departing, officials briefing reporters disclosed that Trump will seek agreements that aid in developing regional resources, aiming to establish more reliable supply chains across industries, boost global growth, and secure increased investment for the United States. However, the specifics of these agreements were not revealed.
Rare earth minerals are crucial for technology, defense, and energy sectors, making their supply a key issue in US-China talks. If Trump can secure agreements with Asian countries, it could diminish China’s control over key minerals.
In response to China’s stricter export controls on rare earths and other crucial minerals amid escalating trade tensions, Trump warned that unless Beijing lifts these restrictions, a 100% tariff will be imposed on Chinese goods by November 1.
Simultaneously, steps are being taken to ensure alternative sources for mining and processing key minerals to safeguard American industries. Earlier this week, President Trump signed an $8.5 billion agreement with Australian Prime Minister Anthony Albanese to enhance US access to vital minerals.
On Friday, the Trump administration announced initiating a Section 301 investigation on China to assess compliance with the US-China Phase One trade deal, potentially paving the way for more tariffs on Beijing.
Treasury Secretary Scott Bessent referred to the Trump-Xi meeting as a “pull-aside,” suggesting it is not a formal negotiation. Trump later stated that they will have a “quite lengthy meeting” to address “many of our incredible concerns and assets.”
Potential agreements may involve limited tariff reductions or extensions, Beijing resuming purchases of American soybeans and Boeing aircraft, partial relaxation of high-end chip restrictions by the US, and easing Chinese controls on rare earth magnets.
However, the possibility of no agreement being reached cannot be ruled out. Informants have indicated to Reuters that neither side anticipates major breakthroughs, with the focus of the meeting being on managing disputes and somewhat improving bilateral relations.
President Trump recently expressed willingness to lower tariffs on Chinese goods, provided Beijing makes tangible concessions, including lifting export restrictions on rare earths and preventing precursor materials for fentanyl production from entering the US.
In addition to trade and minerals, the two leaders are expected to discuss other sensitive issues such as Taiwan and pressuring Russia to end the conflict in Ukraine.
Ahead of the meeting, Trump remains optimistic about negotiations, telling reporters this week, “I think that we will ultimately have a fantastic agreement with China … It’ll be great for the world.”
However, China has yet to confirm plans for the meeting between the two leaders.