President Donald Trump expressed strong optimism that the United States and China are close to finalizing a trade agreement, stating during a speech in South Korea that he expects a “good deal” to emerge from his upcoming meeting with Chinese President Xi Jinping. This announcement came at the Asia-Pacific Economic Cooperation summit, capping a weeklong Asian tour focused on strengthening economic ties and de-escalating trade tensions between the world’s two largest economies.
Trump made the remarks on Wednesday in Gyeongju, South Korea, where he addressed leaders at the APEC forum, emphasizing the potential for a mutually beneficial resolution to the prolonged trade war. “We’re going to be, I hope, making a deal. I think we’re going to have a deal. I think it will be a good deal for both,” he said, highlighting the global significance of the negotiations. The planned meeting with Xi is set for Thursday in Busan, South Korea, with Beijing confirming the sit-down to discuss bilateral relations and shared interests, though Chinese officials have been more reserved in their public statements compared to Trump’s upbeat tone.
The trade conflict has involved reciprocal tariffs and restrictions, with key issues including China’s export controls on rare earth elements—essential for technology and defense industries—and the status of TikTok’s U.S. operations under ByteDance. Recent diplomatic efforts have shown progress, as U.S. Treasury Secretary Scott Bessent indicated that threatened 100% tariffs on Chinese goods are now “effectively off the table” after negotiations. This development suggests a potential thaw, though challenges remain, such as China’s boycott of U.S. soybeans, which has hurt American farmers, and the need for Beijing to approve the TikTok transfer.
Amid the trade discussions, concerns have surfaced within the Trump administration regarding U.S. policy on Taiwan. White House aides privately worry that Trump might shift the long-standing position of not supporting Taiwan’s independence to openly opposing it, a change China has aggressively sought. Such a move could be seen as a concession to secure the trade deal, though senior officials, including Secretary of State Marco Rubio, have publicly reaffirmed that the policy remains unchanged, aiming to reassure allies and prevent regional instability.
Trump’s APEC speech also showcased his broader trade achievements in Asia, including agreements with Japan, Malaysia, Vietnam, Cambodia, and Thailand. He signed a deal with Japanese Prime Minister Sanae Takaichi, imposing 15% tariffs on Japanese goods and securing a $550 billion investment pledge, while framing these partnerships under the mantra that “economic security is national security.” These efforts are part of a strategy to rebalance trade through tariffs and investments, though critics warn of potential inflation and economic slowdowns.
The upcoming Trump-Xi meeting is viewed as a critical test of U.S.-China relations, with observers noting the high stakes for global economics and geopolitics. Nicholas Burns, a former U.S. ambassador to China, described the trade war as a “test of wills” between competing powers, underscoring the importance of issues like technology competition and regional influence. The outcome could reshape not only trade flows but also diplomatic dynamics across Asia, where countries are closely monitoring the superpowers’ interactions.
Taiwan remains a sensitive backdrop to the talks, with Chinese officials reiterating that it is a “core interest” and a “red line” in bilateral relations. Taiwanese authorities have expressed unease about being sidelined, though U.S. reassurances have tempered some fears. The interplay between trade negotiations and Taiwan policy adds complexity, as any perceived shift could alienate partners or escalate tensions, highlighting the delicate balance Trump must strike.
As the leaders prepare to meet, the focus is on whether they can cement a deal addressing tariffs, rare earths, and digital trade while managing ancillary issues. A successful agreement could ease economic pressures and foster cooperation, but failures or missteps might exacerbate conflicts. The world watches intently, as this meeting could define the future of U.S.-China relations and influence global stability for years to come.