Washington: U.S. President Donald Trump is scheduled to meet Chinese President Xi Jinping in South Korea later this month, signaling a potential thaw in rising trade tensions between the world’s two largest economies. The high-profile encounter is set to take place during the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju on October 31 and November 1, marking the first face-to-face meeting between the leaders since Trump’s return to office.
The backdrop of this summit involves a series of recent trade confrontations. China had expanded export controls on rare earth elements, materials crucial for a wide range of technological applications. In retaliation, President Trump threatened to impose a sweeping 100% tariff on Chinese imports, a move that sent immediate shockwaves through international financial markets. The threat raised concerns about global supply chain disruptions and heightened geopolitical tensions.
However, communications over the past weekend have indicated a willingness on both sides to step back from escalation. Trump confirmed that the new tariffs would be delayed until November 1, and officials have reiterated that the planned summit with Xi remains on track. U.S. Treasury Secretary Scott Bessent described the recent exchanges as “substantial de-escalation” and emphasized the importance of allied support from European nations, India, and other Asian democracies in maintaining pressure on China regarding its economic practices.
The upcoming meeting carries broad implications for global trade and diplomacy. As economic powerhouses, the U.S. and China significantly influence international economic policies, market stability, and supply chains. Analysts suggest that the outcome of Trump and Xi’s dialogue could reshape trade patterns, impact commodity prices, and influence geopolitical alliances in Asia and beyond.
In preparation for the summit, both countries are conducting staff-level consultations during the annual meetings of the World Bank and International Monetary Fund in Washington. These behind-the-scenes discussions aim to lay the groundwork for a constructive engagement, addressing the complex economic and regulatory issues that have fueled recent tensions.
Global markets and policymakers are closely monitoring developments, aware that even minor shifts in U.S.-China relations can reverberate across financial markets and international trade networks. The meeting in Gyeongju could define the trajectory of bilateral relations for years to come, with wide-ranging consequences for economic stability and diplomatic relations worldwide.