US President Donald Trump and Chinese President Xi Jinping began direct discussions on October 30, marking their first in person meeting since Trump returned to the White House, Japan's Kyodo News reports. The session, held in the coastal city of Busan, drew global attention as both leaders attempt to calm a period of escalating trade friction.

At the start of the talks, Trump expressed confidence that his relationship with Xi would remain positive into the future. He hinted that substantial progress had already been made prior to the meeting and suggested that further understanding would be reached during their conversation.

Xi responded by saying that the world’s two largest economies should act as partners rather than rivals. He acknowledged that disagreements are natural when major powers interact, yet insisted that cooperation offers benefits to both sides. Xi linked China’s continued growth with Trump’s ambition to boost American prosperity, emphasising that both nations can succeed together.

This discussion took place as Trump neared the end of a three country trip across Asia and Xi arrived in South Korea for the Asia Pacific Economic Cooperation summit in Gyeongju.

Recent tensions have intensified due to China’s new export rules on rare earth materials, which are vital for advanced manufacturing sectors. Trump has also expressed dissatisfaction with China’s halt on American soybean imports and urged Beijing to restart purchases.

In preparation for the summit, senior officials reached a draft arrangement in Malaysia the previous weekend. US Treasury Secretary Scott Bessent indicated that the additional tariff of 100% on Chinese imports, which Trump had planned to activate on October 31, would likely not proceed. Bessent also suggested that China may postpone the rare earth export restrictions for one year.

Trump noted that he is considering reducing the extra 20% tariff introduced earlier this year in response to concerns about fentanyl. He has repeatedly criticised China for not doing enough to curb the flow of chemicals used to manufacture the drug.

According to Kyodo News, Both nations imposed reciprocal tariffs earlier this year, but agreed to scale them down in May and later extended a pause on further increases until November 10. Bessent signalled that the current 90 day truce could be prolonged.

Beyond trade, the leaders may address China’s purchases of Russian oil amid the conflict in Ukraine. Trump has argued that revenue from these sales supports Moscow’s military effort. When asked about Taiwan, Trump said he had not decided whether the topic would be raised.