Trump-Xi Talks End In Truce, Not Deal, With New Potent Risks

2025-10-30 09:01:41

(MENAFN- Asia Times) US President Donald Trump and Chinese President Xi Jinping finally met in Busan, South Korea, for long-awaited talks aimed at easing trade tensions.

If that was the objective, it was only narrowly achieved: the US“fentanyl tariffs” on China were halved-from 20% to 10%-bringing Chinese tariff levels closer to those of other Asian economies.

In return, China agreed to resume imports of American soybeans-hardly a breakthrough-and, more importantly, to lift the new export controls on rare earth elements (REEs) announced in October. These controls covered five additional REEs and extended existing restrictions.

However, the earlier controls announced in April-on seven REEs, including gallium and germanium, both critical for the defense and semiconductor industries-remain firmly in place. In other words, Trump failed to turn back the clock on REEs, leaving China with a potent strategic lever for future pressure tactics and disputes.

Still, China's upper hand in this“deal” is more limited than it might have hoped. Reports suggest Xi wanted to raise the Taiwan issue and secure a US assurance against supporting Taiwanese independence-a topic that apparently didn't make the agenda.

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