US President Donald Trump and his Chinese counterpart, Xi Jinping, are scheduled to engage in a crucial summit in South Korea on Thursday. This meeting occurs at a time when the two largest economies in the world are embroiled in a trade conflict that has disrupted the global economy.
Tensions between the two countries have escalated once more in recent weeks due to Washington’s increase in export controls and China’s imposition of stricter regulations on rare earth exports. This reciprocal escalation ultimately led Trump to threaten a 100 percent tariff on Chinese products effective November 1.
Nevertheless, officials from both nations assert that the United States and China made significant progress over the weekend following the most recent round of trade discussions in Malaysia. The agreement on a framework for a trade deal has paved the way for a meeting between Trump and Xi during the Asia-Pacific Economic Cooperation CEO summit in South Korea.
It is important to highlight that this will mark the first face-to-face meeting between the two leaders since the American president returned to the White House in January. Trump and Xi last convened in 2019 at the G20 Summit in Osaka, Japan. A critical deadline looms on November 10 for a trade truce and an agreement concerning the sale of TikTok in the United States. Here’s what both parties will be anticipating from the discussions.
What America Seeks
The following outlines the issues that the United States aims to address with China:
Fentanyl – It is essential to mention that Trump initially imposed tariffs on Chinese goods in February, citing Beijing’s purported failure to control the influx of illegal drugs into the United States. In contrast, China has maintained that it has already implemented extensive measures to tackle the issue. A resolution on this matter could lead to a partial or complete reduction of Trump’s 20 percent fentanyl tariffs.
Rare Earths – In light of the trade tensions, China has enacted unprecedented export controls on these essential minerals, resulting in global shortages and disruptions to supply chains. This situation is particularly alarming given that Beijing holds a dominant position in the processing of rare earths, representing over 90 percent of the global processed output.
Soybeans – For an extended period, China has been the foremost purchaser of American soybeans. However, since May, imports have ceased entirely, impacting American farmers. Trump is likely to seek a resolution to this issue.
Russia–Ukraine War – Trump will also strive to gain additional leverage to bring an end to the conflict in Ukraine. He has articulated hopes that Xi, a close ally of Moscow, will assist in his efforts to resolve the situation. Furthermore, Trump has consistently threatened to impose tariffs on China regarding its purchases of Russian oil, a measure he has already implemented with India.
Level Playing Field – Washington is also tackling its long-standing concerns regarding its economic relationship with China, which includes a significant trade deficit, Beijing’s system of industrial subsidies, and restrictions on foreign access to specific markets.
What China Is Hoping For
US Tech Controls – The United States’ restrictions on the export of AI chips and other technologies to China have raised significant concerns in Beijing, which has brought this issue up during trade negotiations.
Taiwan Issue – It is crucial to recognize that China’s ruling Communist Party asserts that democratic Taiwan is part of its territory, despite never having exercised control over it. Consequently, China may request that the United States refrain from supporting Taipei’s independence efforts and avoid involvement in this matter.
Preventing the US from Containing China’s Rise – In recent years, Beijing has perceived Washington’s actions as attempts to stifle China’s economic development and technological aspirations. China would prefer the United States to relax investment restrictions imposed on Chinese enterprises.
Peripheral Concerns
TikTok – During the course of trade negotiations, both Trump and Xi have made strides towards finalizing an agreement regarding TikTok. According to legislation enacted during the Biden administration, the American assets of TikTok must be divested to US purchasers. Therefore, it is possible that the agreement on this matter could be concluded at this week’s meeting.
Port Fees – China has consistently expressed apprehensions regarding Washington’s recent decision to impose charges on Chinese-built vessels for docking at American ports. In response, Beijing has implemented comparable fees on US ships. Both leaders are anticipated to discuss this matter.
Nuclear Weapons – Trump has suggested nuclear arms control as one of the subjects for dialogue.
Release of Jimmy Lai – Prior to his trip to Asia, Trump indicated that he might urge his Chinese counterpart to facilitate the release of imprisoned Hong Kong media mogul Jimmy Lai, a British national and founder of the now-defunct newspaper Apple Daily. Lai has been a vocal critic of Beijing’s repression of Hong Kong’s pro-democracy protests in 2019 and has been in custody since 2020.
In summary, the global community will be observing the meeting between Trump and Xi with great interest.
