Image: from Austin Lee X @austinleenyc
The long-awaited meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Busan, South Korea, ended with cautious optimism and an agreement for a one-year trade truce. Trump hailed the summit as “amazing,” calling it the highlight of his five-day Asia tour, but analysts remain unconvinced that the meeting produced meaningful progress in resolving deep-rooted U.S.–China tensions.
A Shorter-Than-Expected Meeting
The talks between the two leaders lasted just one hour and forty minutes, shorter than many had anticipated. Observers say this brevity suggests that both sides had already prearranged most points of discussion. Trump had previously hinted that the meeting could run as long as four hours, but the reduced time frame hinted at limited breakthroughs.
Despite this, Trump declared the outcome a resounding success, describing it as “a 12 with 10 being best.”
The Trade Truce: What Was Agreed
The summit produced no formal trade deal, but rather a temporary pause in hostilities between the world’s two largest economies. Under the agreement:
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China will delay new export restrictions on five rare earth metals, though restrictions on seven others remain.
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Beijing will resume imports of U.S. soybeans immediately.
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China will “intensify efforts” to curb illegal fentanyl trafficking, leading Washington to halve its 20 percent fentanyl-related tariff.
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The U.S. will suspend planned technology export controls targeting Chinese subsidiaries, and both sides will halt the tit-for-tat imposition of port fees.
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China will pause countermeasures tied to Washington’s Section 301 investigation into unfair trade practices for one year.
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Trump announced that he will visit China in April, with Xi expected to see the U.S. later in the year.
While the White House called the truce a “reset,” trade experts described it as a “minor rollback” rather than a breakthrough.
Technology and Semiconductors: The Elephant in the Room
Technology remains the core fault line in U.S.–China relations. Trump confirmed that semiconductor trade was discussed, but clarified that the talks did not include Nvidia’s Blackwell AI processors, which are restricted under U.S. export controls.
“China is going to be talking to Nvidia and others about taking chips,” Trump said, adding, “We’re not talking about the Blackwell.”
Analysts say the statement leaves more questions than answers. The U.S. restrictions on advanced AI chips have been a major source of tension, as Nvidia dominates the market for processors used in artificial intelligence systems.
WATCH MORE: Donald Trump said he struck a deal with Xi to cut China tariffs to 47% after two hours of talks in South Korea's Busan and touted trade breakthroughs with South Korea and Japan before wrapping up his Asia tour https://t.co/mkBE98p8JI pic.twitter.com/7Y2AMj4GpI
— Reuters Asia (@ReutersAsia) October 30, 2025
Rare Earth Metals: A Strategic Win
One of the most significant outcomes for Washington was Beijing’s agreement to delay rare earth export restrictions. These minerals are vital for producing everything from smartphones to fighter jets, and China controls more than 70 percent of the global supply.
Analysts say Trump’s success in securing this delay could be considered a strategic win, though China will likely continue to use rare earths as leverage in future negotiations.
Soybeans and Fentanyl: Political and Human Stakes
The resumption of soybean imports is a welcome development for U.S. farmers, particularly in the Midwest, where agricultural exports were devastated by the earlier trade war. Still, soybean futures dipped after the summit, as traders sought more clarity on the details.
On fentanyl, a deadly synthetic opioid fueling the U.S. drug crisis, China pledged stronger action against illegal exports. Washington’s partial tariff rollback was tied directly to this commitment, though previous promises from Beijing have had mixed results.
Xi Jinping’s Message: Stability and Cooperation
Chinese state media framed the summit as a step toward “stabilizing” relations. Xi reportedly told Trump that China “does not seek to replace any country” and prefers to focus on its domestic development.
He described China’s economy as “an ocean” capable of withstanding risks and emphasized that cooperation brings “long-term benefits” for both sides.
Mixed Reactions from Analysts
Despite Trump’s upbeat tone, many analysts questioned the depth of the summit’s outcomes. Einar Tangen, senior fellow at the Taihe Institute, said Trump’s tariff reduction from 57 to 47 percent “means nothing.”
“Tariffs above 30 percent effectively end trade,” Tangen explained. “Beijing would have hoped for something closer to 20 or 25 percent.”
Until a joint communique is published, experts say it will be difficult to assess how much real progress was made in Busan.
The Road Ahead
While the Busan summit avoided escalation, it did not fundamentally alter the course of the U.S.–China relationship. Trade, technology, and geopolitical tensions remain unresolved, and both leaders now face the challenge of translating a brief truce into lasting stability.
As Trump prepares for his visit to China in April, global markets and political observers will be watching closely to see if this “amazing” meeting leads to more than symbolic gestures.
Staff Writers at Open Chronicle produce in-depth, field-informed reporting on defense, diplomacy, cultural transformation, and global affairs. Known for clarity, accuracy, and analytical depth, they connect breaking developments to broader historical and strategic contexts. In addition to frontline journalism, Staff Writers also contribute to the Open Chronicle Encyclopedia, crafting authoritative entries that preserve critical knowledge and enrich public understanding.