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US President Donald Trump emerged from his meeting with Chinese leader Xi Jinping boasting of a "great success," rating it 12 out of 10. Beijing's response was notably cooler, signalling satisfaction without enthusiasm. While Trump sought quick wins and immediate relief for American markets, Xi appeared content to extend negotiations, confident that time works in China's favour.
The meeting, held at a South Korean air base, produced a fragile truce. Washington agreed to lower certain tariffs and postpone blacklisting Chinese firms, while Beijing suspended export restrictions on rare earth's, vital minerals used in electronics and defence systems. The understanding steadied global markets but fell short of resolving the deeper rivalry between the two superpowers.
Former Trump adviser Kelly Ann Shaw described the arrangement as "managing the breakup." Both nations, she said, are diverging in strategy, seeking to limit damage rather than restore trust. The pause in hostilities is temporary, not transformative.
For Xi, the calculus is long-term. China has absorbed years of tariffs while diversifying trade partners and strengthening internal markets. Despite facing a property crisis and slowing consumption, Beijing's message remains resolute: "struggle, but don't break." Economists like Keyu Jin note that China's tactic has evolved, escalating pressure only to de-escalate from a position of strength.
China's rare earth leverage, which dominates 90% of global processing, proved decisive. Restricting those exports forced Washington to the table. Similarly, halting soybean imports, hurting farmers in Republican strongholds, targeted Trump's political base. The renewed purchase of American soybeans is, therefore, both economic and symbolic.
Analysts argue Xi has grown more prepared for Trump's second term. China now sends only 11% of its exports to the US, down from nearly 20% four years ago. The Busan handshake symbolized coexistence more than cooperation: Xi's stoic composure contrasted sharply with Trump's exuberance.
