(MENAFN) US President Donald Trump has described his recent meeting with Chinese President Xi Jinping as a significant step toward lasting peace and stronger ties between the two nations, according to reports.

The leaders met for the first time in six years on Thursday during the APEC summit in Busan, South Korea, where Beijing indicated that both sides had reached a consensus to resolve “major trade issues.”

Under the agreement, China will temporarily suspend its recent rare-earth export controls in exchange for reciprocal US tariff reductions. The deal also includes a US commitment to lower tariffs on Chinese imports and to suspend investigations into China’s maritime and logistics sectors.

“My G2 meeting with President Xi of China was a great one for both of our countries,” Trump wrote on Truth Social. “This meeting will lead to everlasting peace and success. God bless both China and the USA!”

Relations between the two powers have been strained for years, largely due to trade disputes initiated when Trump imposed broad tariffs on Chinese goods during his first term. Under the new framework, US tariffs on Chinese products will drop from 57% to 47%, export restrictions targeting certain Chinese companies will be suspended, and fentanyl-related tariffs will be reduced. China will also adjust its retaliatory measures.

Beijing has agreed to lift rare-earth export limits for one year while reviewing long-term strategies. These materials, crucial for electronics and military applications, had been restricted after the US tightened its own controls on advanced semiconductors and chipmaking equipment. China will also resume purchases of US soybeans and other agricultural products, though most other trade restrictions remain in effect.

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