Xi and Trump Reach Temporary Truce Amid Ongoing Trade Tensions

Thu Oct 30 2025 19:00:35 GMT+0200 (Eastern European Standard Time)

In a high-stakes meeting, President Trump claimed success following discussions with Chinese leader Xi Jinping, although initial responses indicate a divergence in expectations between the two nations.

During a recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping, Trump declared the talks a significant success, rating it a '12 out of 10.' However, China's emphasis on following up suggests a more strategic, long-term approach to negotiations. The two nations discussed possible tariff reductions, but significant differences remain at the heart of their competitive relationship. Both leaders aim to navigate their countries through economic pressures while preserving crucial bilateral ties amidst a complex trade landscape.

Donald Trump came away from his meeting with Chinese leader Xi Jinping full of bombastic optimism. He called it a 'great success' and rated it 12, on a scale of 1 to 10. China was less enthusiastic. Beijing's initial statement sounds like an instruction manual, with Xi urging teams on both sides to 'follow up as soon as possible.'

Trump is after a deal that could happen 'pretty soon', while Beijing, it appears, wants to keep talking because it's playing the long game.

There was a more detailed second Chinese statement that echoed what Trump had said on board Air Force One. Among other things, the US would lower tariffs on Chinese imports, and China would suspend controls on the export of rare earths, critical minerals without which you cannot make smartphones, electric cars and, perhaps more crucially, military equipment.

There is no deal yet, and negotiators on both sides have already been talking for months to iron out the details. But Thursday's agreement is still a breakthrough. It steadies what has become a rocky relationship between the world's two biggest economies and it assures global markets.

But it is only a temporary truce. It doesn't solve the differences at the heart of such a competitive relationship. 'The US and China are going in different directions,' says Kelly Ann Shaw who was an economic advisor to President Trump in his first term.

'It's really about managing the breakup in a way that does a limited amount of damage, that preserves US interests, and I think from China's perspective, preserves their own interests. But this is not a relationship that is necessarily going to improve dramatically anytime soon.'

There is an art to doing a deal with Donald Trump. It involves flattery, and most countries have tried it, including on his trip to Asia so far. South Korea gave him an enormous golden crown, while Japan's prime minister nominated him for a Nobel Peace prize.

But the Chinese leader offered only a meeting at a South Korean air base, where he and Trump would cross paths - as one flew into the country, and the other departed. It didn't feel out of step with China's guarded but defiant response from the start of Trump's trade war. Just days after the American president increased tariffs on Chinese goods, Beijing retaliated with its own levies.

China's main principle is struggle, but don't break,' says Keyu Jin, author of The New China Playbook. And it has escalated to de-escalate, which is a very new tactic.

Despite the country's current challenges - a real estate crisis, high youth unemployment and weak consumer spending - China has shown it is willing to absorb the pain of Trump's tariffs.

China limited exports of rare earths to the US - and China processes around 90% of the world's rare earth metals. The nuance often missed in the rare earths debate is that China has an overwhelming position over the most strategic bit of the rare earth supply chain: the heavy rare earths used in advanced defence systems.

Trump's team has found itself dealing with a stronger China compared to his first term. Xi showed up in South Korea, after officially confirming the meeting with Trump just the day before, to take part in political theatre that seemed to underline a position of strength.

As usual, he was in front of Trump for the handshake. He stood unblinking as Trump leaned forward to whisper in his ear - the kind of ad lib moment China abhors.

At the end of the meeting Trump ushered Xi to his waiting car where the Chinese leader was immediately surrounded by his security team. The US President was then forced to wander off camera to find his vehicle alone.

Despite the complexities, experts see positives in this superpower summit. As businesses, markets, and other countries breathe easier amidst the calm, analysts warn of possible fragmentation ahead. 'I think over the medium to long-term, the US and China have very serious differences,' Shaw remarks. The rivalry between the two sides, marked by Trump's consistent ambition for a better deal, is likely to persist, raising doubts about the duration of this newfound détente.