Trump and Xi Hold ‘Positive’ Talks in South Korea but No Formal Trade Deal Reached

By THE SOURCE NEWS GH

In their first meeting in six years, former U.S. President Donald Trump and Chinese President Xi Jinping held what both sides described as a constructive conversation aimed at easing tensions between the world’s two largest economies. The talks, held on Thursday in South Korea, did not produce a formal trade agreement, but both leaders signaled progress toward resolving long-standing disputes.

Trump hailed the meeting as “amazing,” while Beijing described it as a “consensus to address major trade issues.” The encounter comes after years of strained relations marked by tariffs, sanctions, and mutual accusations of economic coercion.

Key Developments and Announcements

According to Trump, China agreed to suspend export restrictions on rare earth materials—critical components for smartphones, electric vehicles, and defense technology. In exchange, the U.S. pledged to reduce certain tariffs related to ingredients used in the production of fentanyl, a drug linked to a growing crisis in North America.

Trump also announced that China would resume large-scale purchases of U.S. soybeans and agricultural products, signaling relief for American farmers affected by previous tariff measures. U.S. Treasury Secretary Scott Bessent confirmed that Beijing would purchase 12 million metric tonnes of soybeans this season, followed by at least 25 million tonnes annually over the next three years.

“This is a win for American farmers and a step toward stabilizing trade,” said Sean Stein, President of the U.S.-China Business Council, who called the outcomes “a welcome truce” in an otherwise turbulent trade relationship.

Remaining Disagreements

Despite the optimistic tone, most tariffs remain intact—U.S. importers continue to pay over 40% duties on Chinese goods. Additionally, no progress was reported on the fate of TikTok, the Chinese-owned video-sharing platform that Washington has targeted for national security reasons.

Trump said discussions also opened the door for renewed dialogue between Chinese officials and Nvidia CEO Jensen Huang, a significant step, given the ongoing U.S. restrictions on exporting advanced AI chips to China.

Meanwhile, Beijing extended an official invitation for Trump to visit China in April, signaling an intent to keep communication channels open.

China’s Cautious Approach

While Trump characterized the meeting as a breakthrough, President Xi was more reserved. Speaking to Chinese media, Xi described the meeting as a “good start” and emphasized the need for both countries to pursue “outcomes that bring reassurance to both economies.”

Observers noted a difference in style and tone: Xi’s carefully worded statements contrasted with Trump’s spontaneous remarks. Analysts say China is playing a longer-term strategy, having diversified its global trade network and reduced dependence on U.S. imports since the first round of tariffs in 2018.

Henry Wang, a former adviser to China’s State Council, told BBC Radio 4 that the talks “went very well,” adding that “a framework and structure have been laid” for future negotiations.

Global and African Perspective

The U.S.-China trade relationship has global implications. For Ghana and Africa, a potential thaw between Washington and Beijing could stabilize commodity markets and influence supply chains. Ghana’s exports, including cocoa and minerals, are sensitive to global trade shifts and could benefit from greater economic predictability between the two powers.

Moreover, easing tensions could create space for African economies to attract balanced investment from both the U.S. and China particularly in infrastructure, technology, and renewable energy sectors.

Expert Analysis

Economic analysts note that while Thursday’s discussions mark a diplomatic success, they stop short of a policy breakthrough. Dr. Yaw Mensah, a Ghanaian international trade expert, told THE SOURCE NEWS GH that “a stable U.S.-China relationship benefits all emerging markets, including Ghana. The uncertainty of the past years has disrupted global supply chains and increased costs for import-dependent nations.”

However, Dr. Mensah cautioned that “without a formal agreement, markets will continue to react cautiously.”

What Comes Next

Both sides are expected to form working groups to refine the terms of future trade cooperation. Trump’s upcoming visit to China in April may provide an opportunity for a formal agreement or at least a comprehensive roadmap to normalize relations.

For now, the meeting in South Korea represents a pause in trade hostilities rather than an end. As global economies watch closely, the question remains whether this “good start” will translate into lasting stability between Washington and Beijing.