Trump hails ‘great success’ as Xi meeting eases fears of trade war

President Trump and President Xi appear to have averted a damaging trade war and reset their tense relationship in a meeting that the US president described as a “great success”.

“A lot of things we brought to finalisation,” Trump said after the meeting in South Korea on Thursday, describing Xi as a “tremendous leader of a very powerful country”. He said that on a scale of one to ten, the meeting scored 12.

Later, on his Truth Social platform, Trump said he had also discussed an “energy deal” with Xi that would see China buying oil and gas from Alaska. There was no mention of whether this was part of a broader discussion of China’s oil purchases; America is unhappy with the amount of energy Beijing currently buys from heavily sanctioned Russia and Iran.

Trump said his meeting with Xi was “truly great … there is enormous respect between our two countries, and that will only be enhanced with what just took place”.

The US president drew particular attention to the part of the agreement under which China agreed to resume purchases of US agricultural products. “I was extremely honoured by the fact that President Xi authorised China to begin the purchase of massive amounts of soybeans, sorghum and other farm products,” he said. “Our farmers will be very happy! In fact, as I said once before during my first administration, farmers should immediately go out and buy more land and larger tractors.”

US and Chinese teams hold talks at Gimhae International Airport MARK SCHIEFELBEIN/AP PHOTO

Governments and businesses across the world will be relieved by Trump’s positive words about the meeting in Busan. A rancorous encounter could have led to escalation of the reciprocal tariffs imposed on one another by the leaders of the world’s two biggest economies.

In remarks reported on Xinhua, the Chinese state news agency, Xi said that Washington and Beijing should avoid becoming locked into “a vicious cycle of retaliation”. “The economic and trade teams of the two countries exchanged in-depth views on important economic and trade issues and reached a consensus on resolving them,” he said.

“Both teams should refine and finalise follow-up work as soon as possible, maintain and implement the consensus and provide tangible results to set minds at ease about the economies of China, the United States and the world.”

Trump said that there are few obstacles to making a trade agreement with China “pretty soon”. “We have not had too many major stumbling blocks,” he added.

He said that Xi had agreed to pull back from imposing limits on exports of the rare earths that are crucial to the manufacture of much modern technology.

“All the rare earths has been settled, and that’s for the world,” Trump said on board his presidential jet en route back to Washington. “You could say this was a worldwide situation, not just a US situation. There is no roadblock at all on rare earth. That will hopefully disappear from our vocabulary for a little while.”

He said that he would put off imposing fees on Chinese ships in US ports and will lower from 20 per cent to 10 per cent US sanctions imposed because of US claims that China does too little to prevent the production of the addictive opiate fentanyl.

“I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” Trump said after a five-day tour of Malaysia, Japan and South Korea. “The relationship with China is very good.”

“I guess on the scale from zero to ten, with ten being the best, I would say the meeting was a 12,” Trump said. “I think it was a 12.”

Trump boards Air Force One after the meeting ANDREW HARNIK/GETTY IMAGES

The talks appear to have been marked as much by the difficult subjects that the two men avoided as much as what they agreed on.

Trump said that there was no discussion of the powerful AI chips made by the US company Nvidia, which Trump has banned from being exported to China. Also off the agenda was Taiwan, the democratic self-governing island that the People’s Liberation Army threatens to invade to “reunify” with China.

“Taiwan never came up,” Trump said. “It was not discussed, actually.”

The way appears to have been laid for future China-US summits. “I’ll be going to China in April and he’ll be coming here sometime after that, whether it’s in Florida, Palm Beach or Washington DC,” Trump said. “The whole relationship is very, very important.”

Trump and XI emerged together from the military base in Busan for a cordial handshake after an hour and 40 minutes, less time than the US side was expecting.

The talks began on a constructive note when the Chinese leader said he wanted the world’s biggest superpowers to be “partners and friends” in a clear sign he hoped to de-escalate tensions.

Trump showed his eagerness to ease their trade war during an initial handshake, saying: “We’re going to have a very successful meeting, I have no doubt.”

He underlined the preparations for success when cameras were allowed into the negotiating room, saying: “I think we’ve already agreed to a lot of things and we’ll agree to some more right now … I think we’re going to have a fantastic relationship for a long period of time.”

Trump and Xi leave after their talks at the Gimhae Air Base NDREW CABALLERO-REYNOLDS/AFP

The talks were expected to last at least three hours on a packed agenda including tariffs, Taiwan, China’s restrictions on rare earth metal exports, control of TikTok in the US and China’s role in the illicit fentanyl trade in America.

• TikTok owner ByteDance will still make money from US operation

The initial greeting for the cameras was a little awkward, with Xi remaining tight-lipped while Trump joked that “he’s a very tough negotiator — that’s not good”.

But when cameras were allowed into the negotiating room for a look at the seven senior figures on each side facing each other across a table, Xi delivered a conciliatory statement hinting he was ready to reach agreements on challenges including trade and perhaps also the war in Ukraine.

“Given our different national conditions, we do not always see eye to eye with each other and it is normal for the two leading economies of the world to have frictions now and then,” Xi said. “I always believe that China’s development goes hand in hand with your vision to make America great again,” he continued, referencing Trump’s famous election catchphrase.

He added: “Our two countries are fully able to help each other succeed and prosper together. Over the years, I have stated in public many times that China and the United States should be partners and friends. This is what history has taught us and what reality demands.”

He talked of a “basic consensus” and “encouraging progress” reached by officials in preparing for the talks, their first face-to-face meeting for seven years. “Mr President, I am ready to continue working with you to build a solid foundation for China-US relations and create a sound atmosphere for the development of both countries,” Xi said.

He then praised Trump’s peacemaking efforts in Gaza and the Cambodia-Thailand agreement signed earlier this week before adding that “China’s been helping in our own way … promoting peace talks to resolve other hotspot issues.”

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In a potential hint at Trump’s wish for China to help apply pressure on Russia to come to end the fighting in Ukraine, Xi added: “The world today is confronted with many tough problems. China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world.”

Trump’s opening remarks were brief, and he refused to answer a shouted question on his announcement of an increase in US nuclear weapons testing. This came on social media less than an hour before the meeting in an apparent move to give him more negotiating leverage on an issue where he hopes to reach a three-way agreement with China and Russia on arms reduction.

“The United States has more Nuclear Weapons than any other country,” he posted on his Truth Social site. “Russia is second, and China is a distant third, but will be even within 5 years. Because of other countries testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis. That process will begin immediately.”

Trump also built up the drama of the meeting, posting shortly beforehand that “THE G2 WILL BE CONVENING SHORTLY!”