By Trevor Hunnicutt and Michael Martina and David Brunnstrom
BUSAN, South Korea (Reuters) – As U.S. President Donald Trump and Chinese President Xi Jinping prepare to meet on Thursday, U.S. negotiators have signaled they seek a return to the fragile trade war truce, but tensions remain high and long-term economic frictions are likely to persist between the geopolitical rivals.
Trump has repeatedly expressed his optimism that a deal can be reached when he meets Xi in Busan, South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. It will be their first face-to-face meeting since Trump’s first term.
But with both countries increasingly willing to play hardball in areas of economic and geopolitical competition — what analysts see as a new Cold War — many questions remain about how long any trade détente can last.
The trade war intensified this month after Beijing proposed a drastic expansion of restrictions on exports of rare earth minerals vital for high-tech applications. dominates the global supply of these minerals.
Trump promised to retaliate with additional 100% tariffs on Chinese exports and other measures, including possible restrictions on exports to China made using US software — measures that could have shaken the global economy.
Following intense weekend action between the two countries’ top trade negotiators, US Treasury Secretary Scott Bessent said he expects Beijing to delay controls on rare earths for a year and resume purchases of US soybeans, essential for US farmers, as part of a “framework” agreement to be evaluated by Trump and Xi.
Ahead of the summit, China bought its first cargoes of soybeans in several months, Reuters reported exclusively on Wednesday.
Ryan Hass, a China expert at the Brookings Institution, said, however, that both sides will be reluctant to give up control of goods and technologies that the other side depends on.
“These chokepoints will remain, with loaded guns on the table, as both leaders look for ways to reduce dependence on each other for essential inputs,” he said.
The White House has signaled that it expects the summit to be the first of several between Trump and Xi next year, including possible visits by leaders to each country, indicating a protracted negotiation process.
(Reporting by Michael Martina, David Brunnstrom, David Lawder, Trevor Hunnicutt and Daphne Psaledakis)
