BUSAN, South Korea - US President Donald Trump met with China’s leader Xi Jinping at a South Korean air base on Oct 30 for discussions on a possible trade war truce between the world’s two largest economies.

the first between the leaders since Mr Trump returned to office in January, caps off the US president’s whirlwind trip around Asia.

Mr Xi told his US counterpart Trump that while the two countries did not always see eye to eye, they should strive to be “partners and friends”.

“China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world,” Mr Xi said as talks kicked off in South Korea’s Busan.

As they sat down with their delegations to begin talks, Mr Xi told Mr Trump via a translator it was normal for the two leading economies of the world to have frictions now and then.

A few days ago, trade negotiators for both countries reached a “fundamental consensus on addressing each other’s primary concerns”, Mr Xi said. “I am willing to continue working with President Trump to lay a solid foundation for China-US relations,” he added.

The meeting, taking place on the sidelines of the Apec summit, lasted nearly two hours. Mr Trump shook hands and escorted Mr Xi to his car before the US president was given a red carpet send-off at the airport.

The Chinese yuan rose to a near one-year high against the US dollar as investors hoped for an easing of trade tensions that have rocked global business. World stock markets from Wall Street to Tokyo have hit record highs in recent days.

“We are going to have a very successful meeting, I have no doubt. But he is a very tough negotiator,” Mr Trump said as he shook hands with Mr Xi, who showed little expression.

Mr Trump has repeatedly expressed optimism about reaching agreement with Mr Xi during the talks, taking place on the sidelines of the Asia-Pacific Economic Cooperation (Apec) summit, buoyed by a breakthrough in trade talks with South Korea on Oct 29.

But with both countries increasingly willing to play hardball over areas of economic and geopolitical competition – which analysts see as a new Cold War – many questions remain about how long any trade detente may last.

The trade war reignited in October after Beijing proposed dramatically expanding curbs on exports of rare-earth minerals vital for high-tech applications, a sector China dominates.

Mr Trump vowed to retaliate with additional 100 per cent tariffs on Chinese exports, and with other steps including potential curbs on exports to China made with US software – moves that could have upended the global economy.

“THE G2 WILL BE CONVENING SHORTLY,” Mr Trump posted on Truth Social shortly before landing in Busan to meet Mr Xi at a South Korean air force base at Gimhae airport.

In a separate post, he said the US would step up testing of nuclear weapons immediately, noting China’s growing arsenal.

Delay to rare earth controls

After a weekend scramble between top trade negotiators, US Treasury Secretary Scott Bessent said he expected Beijing to delay the rare earth controls for a year and revive purchases of US soybeans critical to American farmers, as part of a “substantial framework” to be agreed by the leaders.

Ahead of the summit, China bought its first cargoes of US soybeans in several months, Reuters reported exclusively on Oct 29.

The White House has signalled it hopes the summit will be the first of several between Mr Trump and Mr Xi in the coming year, including possible leader visits to each country, indicating a protracted negotiation process.

But Mr Trump wants some quick progress, in talks being closely watched by businesses worldwide.

Mr Trump said on Oct 30 he expects to reduce US tariffs on Chinese goods in exchange for Beijing’s commitment to curb the flow of precursor chemicals to make fentanyl, a deadly synthetic opioid that is the leading cause of American overdose deaths.

Mr Trump has also said he might sign a final deal with Mr Xi on TikTok, the social media app that faces a US ban unless its Chinese owners divest its US operations.

Beijing is willing to work together for “positive results”, foreign ministry spokesperson Guo Jiakun said on Oct 30.

Previous deals, which brought down retaliatory tariffs sharply to about 55 per cent on the US side and 10 per cent on the Chinese side and restarted the flow of rare earth magnets from China, are due to expire on Nov 10.

Mr Bessent said China had agreed to help curb the flow of fentanyl precursors, but did not say whether the US had made any concessions in return.

Beijing has sought the lifting of 20 per cent tariffs over fentanyl, an easing of export controls on sensitive US technology, and a rollback of new US port fees on Chinese vessels aimed at combating China’s global dominance in shipbuilding, ocean freight and logistics.

Mr Trump’s meeting with Mr Xi comes at the end of a five-day trip to Asia in which he signed pacts with Japan and South-east Asian nations on rare earths, seeking to blunt China’s stranglehold on minerals used in everything from cars to fighter jets.

Taiwan tensions

Regional strategic tensions, particularly over Beijing-claimed Taiwan, a US partner and high-tech powerhouse, are an ominous backdrop to the summit.

On Oct 26, Chinese state media said Chinese H-6K bombers recently flew near Taiwan to practise “confrontation drills”.

US Secretary of State Marco Rubio said Taiwan should not be concerned about the US-China talks, despite some experts expressing fears that Mr Trump might offer concessions over the island. Washington is required under US law to provide Taiwan with the means to defend itself. REUTERS