The meeting, held in Busan, South Korea, lasted 100 minutes and included discussions on advanced computer chip exports to China and agreements for China to begin purchasing American soybeans and exporting rare earth elements. Trump expressed confidence in signing a trade deal soon, noting minimal stumbling blocks.

Despite this optimism, tensions persist between the two largest economies, particularly over manufacturing dominance and emerging technologies like artificial intelligence. Xi acknowledged the likelihood of differences between the nations but emphasized collaboration.

Ahead of the meeting, US officials had indicated that Trump would not pursue a previously threatened 100% import tax on Chinese goods, while China showed willingness to ease export controls on rare earths.

While the meeting provided relief to investors and reflected an optimistic trading environment, previous negotiations had fluctuated, raising concerns about the durability of any agreements reached.

Trump’s tariffs, aimed at addressing China’s role in fentanyl production, are a significant pressure point, while China’s control over rare earth minerals remains critical for high technology production. Ultimately, the meeting illustrated both leaders’ recognition of the need to manage economic relations carefully, balancing cooperation against ongoing rivalry.