High-stake Trump-Xi meeting today: Spotlight on trade, tariff and Taiwan

US President Donald Trump and his Chinese counterpart, Xi Jinping, are set to hold a high-stakes summit in South Korea on Thursday. The talks come at a time when two of the world’s largest economies are already engaged in a trade war that has upended the global economy.

Tensions between the two nations have flared again in recent weeks amid Washington’s expansion of export controls and China’s tightening of rare earth export curbs. The tit-for-tat escalation eventually prompted Trump to threaten a 100 per cent tariff on Chinese goods starting on November 1.

However, officials from both sides maintain that the United States and China made apparent progress over the weekend after the latest round of trade talks in Malaysia. Both nations’ agreement on a trade deal framework has set the stage for a sit-down between Trump and Xi on the sidelines of the Asia-Pacific Economic Cooperation CEO summit in South Korea.

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It is pertinent to note that this will be the first in-person meeting between the two leaders since the American president returned to the White House in January. Trump and Xi last met in 2019, during the G20 Summit in Osaka, Japan. Much at stake is the 10 November deadline for a trade truce and deal involving the sale of TikTok in the United States. Here’s what both sides will be hoping for from the talks.

What America Wants

The following is a list of issues the United States would like to resolve with China:

• Fentanyl – It is pertinent to note that Trump first imposed tariffs on Chinese goods in February, citing Beijing’s alleged failure to curb the flow of illegal drugs into the United States. Meanwhile, China has insisted that it has already taken extensive measures to address the problem. An agreement on this could result in a partial or full reduction of Trump’s 20 per cent fentanyl tariffs.

• Rare Earths – Amid the trade tensions, China imposed unprecedented export controls on these critical minerals, triggering global shortages and disrupting supply chains. What makes this concerning is the fact that Beijing dominates the processing of rare earths, accounting for over 90 per cent of global processed output.

• Soybeans – For years, China has been the largest buyer of American soybeans. However, imports have completely halted since May, affecting American farmers. Trump will be hoping to change that.

• Russia–Ukraine War – Trump will also attempt to seek more leverage to end the war in Ukraine. He has expressed hopes that Xi, a close partner of Moscow, will help in his endeavour to end the conflict. Trump has also repeatedly threatened to impose tariffs on China over its Russian oil purchases, something he has already done with India.

• Level Playing Field – Washington is also addressing its long-term concerns over its economic relations with China, including a substantial trade deficit, Beijing’s industrial subsidy system, and limits on foreign access to certain markets.

What China Is Hoping For

• US Tech Controls – America’s curbs on exporting AI chips and other technology to China have been a major concern for Beijing, which it has raised during trade discussions.

• Taiwan Issue – It is important to note that China’s ruling Communist Party claims democratic Taiwan as part of its territory, despite never having controlled it. Hence, China may also ask the United States not to support Taipei’s cause of independence and to refrain from involvement in the matter.

• Preventing the US from Containing China’s Rise – In recent years, Beijing has viewed Washington’s moves as attempts to contain China’s economic growth and technological ambitions. China would want the United States to ease investment restrictions on Chinese companies.

Peripheral Issues

• TikTok – Throughout the trade talks, both Trump and Xi have made progress in finalising a deal on TikTok. Under legislation passed during the Biden era, the American assets of TikTok are required to be sold to US buyers. Hence, the finalisation of the deal in this regard could be reached at this week’s meeting.

• Port Fees – China has repeatedly raised concerns over Washington’s recent move to charge Chinese-built ships for docking at American ports. In retaliation, Beijing has introduced similar levies on US vessels. Both leaders are expected to address the issue.

• Nuclear Weapons – Trump has proposed nuclear arms control as one of the topics for discussion.

• Release of Jimmy Lai – Before heading to Asia, Trump said he might press his Chinese counterpart to release jailed Hong Kong media tycoon Jimmy Lai, a British citizen and founder of the now-defunct newspaper Apple Daily. Lai has been an outspoken critic of Beijing’s suppression of Hong Kong’s 2019 pro-democracy protests and has been detained since 2020.

Overall, the world will be watching closely the meeting between Trump and Xi.