‘A fantastic relationship’: Trump and Xi seek to revive trust and ease trade strains in first meeting in years

US-China Leaders meet amid trade tensions

US President Donald Trump and Chinese President Xi Jinping held their first in-person meeting in several years on Thursday, a long-anticipated encounter that could reshape the course of US-China relations after months of trade and strategic friction.

The talks, held at a South Korean air base in Busan on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit, drew intense global attention. Both leaders appeared eager to signal a thaw in relations that have deteriorated over tariffs, export controls, and competing visions for global leadership.

As Trump greeted Xi on a red carpet, he expressed optimism about the talks. “We have a great relationship. Xi is a tough negotiator. We will be having some discussions, and we agree on a lot of things and will agree on more now. It’s an honour to have you,” Trump said, adding that he expected “a very successful meeting.”

Xi, smiling as the two shook hands, responded warmly. “It feels warm seeing you again, because it’s been many years,” he said. “We stayed in close contact, even when we did not see eye to eye with each other. You and I should stay at right course. China and the US should be partners and friends.”

During the opening remarks, Trump added: “It’s a great honour to be with a friend of mine, really for a long time now — the very, very distinguished and respected President of China. We’ve already agreed to a lot of things, and we’ll agree to some more right now. President Xi is a great leader of a great country, and I think we’re going to have a fantastic relationship for a long period of time.”

Trade tensions and the global economy

The meeting came amid renewed trade tensions between the world’s two largest economies. The friction reignited this month after Beijing announced new curbs on exports of rare-earth minerals critical for high-tech industries — a sector where China maintains dominance. In response, Trump threatened additional tariffs of up to 100 per cent on Chinese goods, alongside curbs on exports to China that rely on US software.

China has already faced new tariffs totalling 30 per cent this year, including levies linked to its alleged role in fentanyl production. Trump had floated plans to raise rates to as high as 145 per cent in April but backed off after markets reacted sharply.

Both sides, however, appear intent on avoiding an escalation that could shake the global economy. Officials familiar with the talks said the two leaders were focused on ways to stabilise trade ties and reopen channels of communication between Washington and Beijing.

A symbolic setting

While summits between the two powers have often been staged in lavish surroundings, Thursday’s meeting took place in humbler circumstances — a small grey building with a blue roof inside a military base adjacent to Busan’s international airport. Trump’s helicopter landed at 10:17 a.m. local time, with Xi’s Air China jet arriving about ten minutes later.

Before the formal handshake, aides from both sides reportedly engaged in a flurry of negotiations over protocol and seating arrangements — a reflection of the delicate nature of US-China diplomacy.

Shortly before the meeting, Trump posted on Truth Social that the session would be the “G2,” a nod to America and China’s shared status as the world’s two largest economies.

The stakes

Trump and Xi’s encounter comes as their nations compete for dominance in global manufacturing, artificial intelligence, and international diplomacy — including differing positions on Russia’s war in Ukraine and the security of Taiwan.

Trump, who has wielded tariffs aggressively in his second term, has repeatedly argued that his policies have restored America’s leverage in global trade. Xi, meanwhile, has sought to project confidence that China can withstand external pressure while pursuing self-reliance in critical technologies.

Despite their rivalry, both leaders struck a conciliatory tone in Busan, suggesting a willingness to prevent their competition from tipping into open confrontation. “I think we’re going to have a fantastic relationship for a long period of time,” Trump said.

As their talks continued, analysts noted that the meeting — though light on immediate breakthroughs — marked a significant step in resetting dialogue between Washington and Beijing at a critical juncture for global stability.

(With inputs from agencies)