In a heavyweight diplomatic battle, Former President Donald Trump welcomed Chinese President Xi Jinping for the first time in six years. Indeed, the tenor of this meeting has already set expectations high for a thawing of relations between the U.S. and China. That VIP meeting on decarbonization was held in South Korea. Both leaders then participated in real-time, dynamic conversations to find solutions to significant trade disputes that have soured their countries’ relationship.
At the conclusion of the meeting, Trump described the negotiations as “incredible,” indicating that he was ready to whip out the art of the deal. Especially in an election year, the debates fixate on issues. Both presidents committed to address longstanding bilateral trade issues that have hurt American farmers, ranchers and manufacturers. The People’s Republic of China (PRC) announced that it would halt its own export control measures on rare earth elements. Those factors are important for manufacturing everything from smartphones to military aircraft.
In a move that is expected to benefit American farmers, Trump announced that China would begin purchasing “tremendous amounts of soybeans and other farm products” immediately. This new announcement follows Beijing’s retaliatory tariffs on American soybeans, which had successfully frozen soy imports and devastated American farmers. The suspension of these tariffs represents a new dawn in agricultural trade between the two countries.
China invited Trump to pay a state visit to the country back in April. This friendly gesture, after a rocky start by some, gives hope that both sides are willing to continue the conversation and collaboration on trade issues. Yet, for all the optimism of that meeting, it did not produce a binding trade deal. Analysts agree though both leaders seemed closer than ever to banging out an agreement, much more work is still left on the table.
The discussions also touched on a sensitive topic: fentanyl and its ingredients. Specific to narcotics trade Trump actually said the U.S. would remove some tariffs imposed against China that contribute to the flow of these toxins. After all, he already threatened or imposed draconian tariffs on China’s largest trading partners. He thought their answer just didn’t go far enough. This important decision is a clear signal of a new strategic direction in U.S. policy, one which hopefully promotes healthier bilateral relations with Beijing.
Though the meeting was a powerful display of positive momentum, it shone a light on the opposite philosophies of the two leaders. Xi enjoyed a rather insular style in talks, sticking to set remarks written down. By contrast, the meeting took on an element of spontaneity thanks to Trump’s more ad-lib approach. This comparison helps to showcase the larger differences between their approaches to leadership and negotiation.
The positive tone of the meeting led to some great new announcements. Other, unrelated tariffs are still in effect, leaving U.S. importers with tax burdens exceeding 40% on goods they bring in from China. This lost opportunity sheds light on the intricacies of U.S.-China trade, relations, and surprises. Yet both countries have major obstacles to overcome before a full deal can be reached.