In November 2017, U.S. President Donald Trump and Chinese President Xi Jinping solidified their diplomatic relations with a handshake after a significant meeting in Beijing. This first meeting led to years of strife over trade complications between the two countries. Recent developments in the rarity sector such as the case of rare earths and the increasingly soybeans market are heating up these discussions.
After their first meetings in Beijing both leaders are likely to meet again soon in South Korea. This year’s US–China Trade & Economic Summit will address this fraught trading relationship. It seeks to redress the new pernicious dynamics that have set in over years and generations. Trade negotiators from both countries have been burning the proverbial midnight oil to get ready for this meeting. They have hosted important conversations in Malaysia to start to set the stage.
Per industry sources, negotiators have made breakthrough on rare earths. They’re leading the way on soybeans, another key commodity. In Malaysia, the foundation laid over the years has been imperative to cultivate this dialogue. Equally importantly, it has gotten both sides prepared and focused for the direct discussions to come.
The President widely touted handshake — a technology demonstration — between Trump and Xi in Beijing was the least of it. It represented a turning point in U.S.-China relations, illustrating both leaders’ commitment to addressing difficult trade concerns. The importance of this relationship goes beyond the economics, with ripple effects felt in global markets and international diplomacy.
As the two leaders prepare to meet in South Korea, there is cautious optimism regarding the outcomes of these discussions. Our negotiators here in Malaysia have done much to start off on the right foot. This groundwork will have a huge impact in creating the agenda for a hugely anticipated convening.