On Thursday, U.S. President Donald Trump and Chinese President Xi Jinping held discussions in South Korea that resulted in contrasting assessments of their talks. Trump expressed high satisfaction, describing the meeting as “amazing” and rated it a 12 out of 10, while Xi remarked that a consensus had been reached, indicating a need for rapid follow-up actions.
The nature of Trump’s approach to trade, characterized by aggressive posturing, appeared to change as China presented its own arguments for negotiation. Notably, Trump offered no significant incentives during the talks, and the agreement reached was seen as a strategic retreat rather than a triumph. Trump agreed to reduce average tariffs from a previously announced peak of 145% to 45% and paused the tightening of technology-related export controls. China, in turn, has committed to purchasing U.S. soybeans and refraining from imposing stringent restrictions on rare earth exports, which had been threatened prior to the meeting. However, uncertainties remain regarding whether China will gain access to significant exports of advanced technology, such as Nvidia’s Blackwell chip.
This recent agreement is framed as a temporary resolution, while Trump’s trade strategies have been inconsistent. He had recently announced additional tariffs on Canada, raising concerns among U.S. allies about reliance on American policies. Efforts to counterbalance China have raised alarms as nations like India appear to be increasingly turning to China due to harsh tariffs.
As the geopolitical landscape shifts, U.S. businesses express apprehension over navigating unpredictable tariff rates, complicating long-term strategic planning. In contrast, China is focusing on addressing its economic vulnerabilities through careful planning, which may provide it with a competitive edge. Despite the temporary reprieve from escalating tensions, both countries face underlying challenges that could foster broader risks for global partners. The G7 summit in Canada is expected to address China’s dominance, highlighting the urgency for international collaboration against perceived threats.
Source: https://www.theguardian.com/commentisfree/2025/oct/30/the-guardian-view-on-trump-and-china-stepping-back-from-the-brink-but-not-solving-problems