The much anticipated summit between Chinese President Xi Jinping and US President Donald Trump concluded in Busan, South Korea on Thursday, October 30. At the end of the summit both leaders described it as positive and hoped for a better relationship in future.
Their first face to face meeting since Trump retook the presidency in January this year was expected to ease global tensions over the trade war, with high tariffs regimes and restrictions on the export of crucial technology initiated by Trump earlier this year.
“China and the US can jointly shoulder our responsibility as major countries, and work together to accomplish more great and concrete things for the good of our two countries and the whole world,” Xi said during his meeting with Trump.
Xi also said that it is normal for the world’s two largest economies to have friction from time to time. What matters is whether we are able to navigate such differences and resolve them through dialogue instead of resorting to retaliatory measures.
Trump also expressed hope that China-US relations would have a better future as both countries can do great things for the world.
The summit was held on the sidelines of the Asia Pacific Economic Cooperation (APEC) summit which is ongoing in South Korea’s Gyeongju city.
Trump, who has faced popular protests over his trade war and hegemonic policies since his arrival in the region, left for the US after his meeting with Xi, skipping the APEC summit.
“Over the past seven decades and more, we have been working from generation to generation on the same blueprint to make it a reality. We have no intention to challenge or supplant anyone. Our focus has always been on managing China’s own affairs well, improving ourselves, and sharing development opportunities with all countries across the world,” Xi added.
Xi also emphasized China’s plans for further reforms and “opening up” in the coming days, which will create new avenues for cooperation with the US.
The fourth plenary session of the central committee of the Communist Party of China (CPC) recently adopted the 15th five year plan for the country’s social and economic development. It focuses on further reforms and opening up of the economy apart from achieving self-sufficiency in technological development.
Xi hoped that the ongoing trade talks with the US would be finalized soon “in the spirit of equality, mutual respect and mutual benefit.”
The framework of the trade deal
The Chinese Ministry of Commerce issued a press statement on Thursday listing the points of agreement achieved after the latest round of trade talks between the Chinese and US representatives in Kuala Lumpur in Malaysia.
The possible trade deal is expected to ease the tensions between the US and China which ensued following Trump’s imposition of high tariffs on the Chinese exports to the US earlier this year as a part of his so-called reciprocal tariff regime.
China has termed the use of tariffs and protectionism by the US a “trade war” and has retaliated with its own high tariffs and various levels of export controls since then.
Despite ongoing trade talks, the US imposed fresh restrictions on the export of crucial technology to the Chinese firms and docking charges on Chinese ships using American ports in September. Trump also threatened to impose a 100% tariff on Chinese goods after the Chinese retaliated with their own restrictions on the export of rare earth minerals in the beginning of October.
As per the outline released by the Chinese Ministry of Commerce, the US has agreed to reduce its fentanyl-related tariff by 10% and suspend an additional 24% reciprocal tariff on Chinese goods for a year. In return, China will adjust its countermeasures and provide exemptions to certain American goods.
The trade deal also entails the suspension of the September notification regarding the restriction on technology exports to Chinese companies in America’s so-called “entity list” for a year, in return for the Chinese suspension of retaliatory measures adopted on October 9 for the similar period.
The details of the deal were also confirmed by Trump who claimed that America will reduce the tariffs in exchange for China resuming soybean imports from the US and suspending its control over rare earth minerals.
Trump also claimed that China has agreed to take additional measures to control the flow of fentanyl into the US.
Reuters reported that both countries also agreed to pause the retaliatory fees on shipping, ocean freight, and logistics imposed in September.
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