The highly anticipated meeting between Donald Trump and Xi Jinping has concluded, as reported by Chinese state media. This marks their first encounter since 2019, generating significant global interest in the potential outcomes of their discussions. Our correspondent in Busan, Justin McCurry, has provided insights into the event, detailing the initial formalities and exchanges that took place once the two leaders were seated with their delegations.
As the Trump-Xi meeting commenced, Chinese shares surged to a decade high, signaling a positive reaction from investors. The benchmark Shanghai Composite Index rebounded from early losses, increasing by 0.2% to reach 4,025.70, the highest level since 2015. This uptick in the stock market reflects growing optimism over a potential de-escalation of tensions between the U.S. and China, despite a cautious sentiment among investors who remain wary of previous trade negotiations. Sectors such as banking, insurance, and liquor led the gains, while Hong Kong’s Hang Seng Index also rose by 0.6% after resuming trading post-holiday.
In the backdrop of the Trump-Xi discussions, Taiwan's foreign minister, Lin Chia-lung, expressed confidence in Taiwan's relationship with the U.S. during a media briefing. Addressing the meeting, he emphasized that Taiwan is closely monitoring the developments and maintains strong communication with the U.S. government. Lin reiterated that Taiwan’s democratically elected administration rejects Beijing’s claims of sovereignty. The dynamics of U.S.-Taiwan relations have been particularly sensitive, especially given Trump’s fluctuating stance towards Taiwan while seeking a trade agreement with China.
Both leaders arrived with a notable entourage for the meeting. Xi Jinping was accompanied by key figures including Wang Yi, China’s foreign minister, and Cai Qi, a senior advisor and member of the Politburo. Other notable attendees included He Lifeng, China’s vice premier, and Zheng Shanjie, chair of China’s main planning agency. On the U.S. side, Trump brought along prominent officials such as Marco Rubio, the Secretary of State, and Scott Bessent, the Treasury Secretary, among others. This high-level representation underscores the significance both nations place on the discussions.
In anticipation of the meeting, Scott Bessent hinted at a potential “resounding victory” for U.S. farmers, particularly in the soybean market. He indicated that China might resume substantial purchases of American soybeans, which have been significantly affected by the ongoing trade war. With China traditionally being the largest buyer of U.S. soybeans—accounting for over $12 billion last year—the lack of purchases this year has been detrimental to American farmers. Trump has previously proposed financial assistance for those affected by tariffs, yet no concrete plan has been announced amid a government shutdown.
During their initial remarks at the negotiating table, both leaders acknowledged the complexities of their relationship. Xi highlighted Trump’s foreign policy achievements, while Trump praised Xi as a "great leader." Xi articulated the need for cooperation, stating that the U.S. and China should act as “partners and friends.” This sentiment reflects a desire for collaboration despite the inherent frictions that often arise between two leading global economies.
The meeting took place at the Gimhae air base in Busan, a facility that serves both commercial and military purposes. Security measures were noticeably heightened in anticipation of the event, with local media reporting extensive preparations, including practice runs for police motorcades. The choice of venue was strategic, accommodating both leaders' schedules as Xi arrived for the APEC summit while Trump was on the verge of departing.
The Trump-Xi meeting holds significant implications for global trade relations and geopolitical dynamics. As both leaders navigate the complexities of their respective national interests, the outcomes of their discussions could reshape the future of U.S.-China relations, impacting economies worldwide.