Wed Oct 29 02:18:54 UTC 2025: Summary:
U.S. President Donald Trump and Chinese leader Xi Jinping are expected to meet and reach an agreement to de-escalate U.S.-China tensions, but expectations are modest regarding resolving the underlying issues. The potential deal is likely to focus on preventing further escalation rather than reversing existing tariffs and trade restrictions. Specific aspects of the deal may include China delaying export controls on rare earths, increasing purchases of U.S. soybeans, cooperating on halting fentanyl-related chemicals, and finalizing the TikTok deal. Despite the potential deal, significant trade barriers, sanctions, and export controls will remain in place. Analysts believe fundamental contradictions will persist and that U.S.-China relations will continue to be contentious as both countries vie for influence. Some experts suggest the focus on avoiding escalation could provide stability for at least a year, but a comprehensive trade deal remains unlikely. The differing perspectives of Trump and Xi on the relationship further highlight the existing divide.
News Article:
Trump and Xi Expected to Ease Tensions, But Deep Divisions Remain
Gyeongju, South Korea – U.S. President Donald Trump and Chinese leader Xi Jinping are set to meet for the first time in years, with expectations of a deal to de-escalate the increasingly fraught relationship between the two superpowers. The meeting, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, is expected to focus on preventing further escalation rather than resolving the deep-seated issues that have fueled a trade war and broader geopolitical rivalry.
Sources familiar with the discussions suggest the agreement will involve China delaying export controls on rare earths, increasing purchases of U.S. soybeans, and cooperating to curb the flow of chemicals used to manufacture fentanyl. A finalized TikTok deal is also expected to be part of the arrangement. However, a sweeping reversal of tariffs and export controls imposed over the past several years is not anticipated.
“I have modest expectations for this meeting,” said Deborah Elms, head of trade policy at the Hinrich Foundation, reflecting a widespread sentiment among analysts. “I think, no matter what happens this week, we haven’t seen the end of economic tensions, tariff threats, export controls and restrictions, and the use of unusual levers like digital rules.”
Despite any potential agreement, significant trade barriers will remain. The average U.S. duty on Chinese goods currently stands at over 55%, while China’s levy on U.S. products hovers around 32%. Both countries have also imposed sanctions on numerous companies, citing national security concerns.
“The structural contradictions between China and the United States have not been resolved,” cautioned Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China, predicting continuing friction and even worsening relations.
Some analysts, like Shan Guo of Hutong Research, believe the focus on avoiding escalation could provide a period of relative stability. “This means reduced downside risks in US-China relations for at least a year, or perhaps even longer,” Guo said.
However, a comprehensive trade deal remains elusive. Dennis Wilder, a professor at Georgetown University, said that while the summit will produce “positive tactical results”, it will not mark the end of the trade war, adding “Bessent and his Chinese counterpart will continue negotiating in hopes of a more lasting agreement if and when President Trump visits China next year.”
The meeting underscores the complex and often contradictory nature of the U.S.-China relationship, where economic interdependence clashes with strategic competition, leaving the world watching to see how the two powers will navigate their differences.
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