Washington: U.S. President Donald Trump expressed optimism about reaching a fair trade agreement with China, downplaying concerns over potential conflict regarding Taiwan. Speaking ahead of a scheduled meeting with Chinese President Xi Jinping at an upcoming economic conference in South Korea, Trump suggested that China had no intentions of invading Taiwan, emphasizing the strength of the U.S. military as a deterrent.
"I think we'll end up with a very strong trade deal. Both of us will be happy," Trump stated. He acknowledged that Taiwan would likely be discussed during the meeting but maintained a confident stance on the matter.
Meanwhile, U.S. Trade Representative Jamieson Greer adopted a firmer tone, accusing China of engaging in "economic coercion" against firms involved in strategic sectors. Greer warned of possible U.S. retaliation in response to Beijing's actions, which have complicated U.S.-South Korea plans for shipbuilding cooperation.
In a separate development, Trump and Australian Prime Minister Anthony Albanese signed a landmark critical minerals agreement aimed at reducing reliance on China for vital resources. The agreement involves each country investing $1 billion within six months in mining and processing projects, including setting a price floor for critical minerals. The U.S. Export-Import Bank announced over $2.2 billion in funding for projects by Australian companies like Arafura Rare Earths and Northern Minerals.
Trump also reaffirmed U.S. support for the AUKUS strategic alliance, including Australia's $239 billion purchase of American-built nuclear-powered submarines, despite prior uncertainty. Both leaders pledged to streamline mine permitting and increase cooperation on mineral mapping and recycling. The move counters Chinaās dominance in the critical minerals sector, as global tensions rise ahead of Trump's upcoming meeting with Xi Jinping.
The developments highlight ongoing efforts by the United States to strengthen its economic and strategic partnerships in the Indo-Pacific region amid escalating global geopolitical tensions.