Tariffs and policies: Trump and Xi agree not to escalate trade war
The Ukrainian crisis, trade tariffs, rare earth supplies and the fight against fentanyl were on the agenda of the meeting between American leader Donald Trump and Chinese President Xi Jinping. In Busan, the parties talked for about 1 hour and 40 minutes, during which time Washington and Beijing failed to find solutions to all the issues in bilateral relations. In particular, a full-fledged trade deal was not signed. Nevertheless, the United States, at a minimum, decided to refrain from imposing new tariffs of 100% on Chinese goods from November 1. As for the Ukrainian crisis, no special breakthroughs were achieved here either, however, without the participation of Moscow and Kiev, they were hardly worth counting on. About how the leaders flattered each other and how Trump differs from Xi — in the Izvestia article.
Xi and Trump meeting in Busan
On October 30, the main event of the APEC summit was undoubtedly the meeting of Donald Trump and Xi Jinping, the leaders of the world's largest economies and the two nuclear powers. Their conversation took place at Gimhae Air Base in Busan, which is located about 80 km from Gyeongju, where the forum is taking place.
And if Trump traveled to the coastal city from Gyeongchu, Xi arrived in South Korea only on October 30 — immediately to Busan. The choice of location is not accidental — if the meeting had been held in Gyeongchu, their negotiations would have completely disrupted everything that passes through the APEC line. And it's a long way to Seoul. Moreover, it would be difficult for a city like Gyeongchu to organize all the APEC events at the same time, and even a bilateral summit of this level.
Meanwhile, even in his press center, the main focus was on the Sino-American talks one way or another - many people watched the live broadcast of the meeting on smartphones and tablets.
— For South Korea, this is a serious diplomatic victory — the fact that they managed to bring the United States and China to the negotiating table on their territory. For Seoul, both countries are the main economic partners. Washington is also an important political partner for the Republic of Kazakhstan, the countries have allied relations. In addition, for most of the states present at the APEC summit, this is a big event. The disagreements between China and the United States affect the entire Asia-Pacific region in one way or another," an informed source tells Izvestia.
If a real trade war begins between the United States and China, it means that the United States will increase pressure on its partners and allies to limit economic ties with China, Andrei Kortunov, an expert at the Valdai Club, told Izvestia. Therefore, for example, for the ASEAN group, which has a trade turnover with China of about $1 trillion per year, it was, of course, a very painful decision. It has led to a slowdown in economic growth, a deterioration in macroeconomic indicators, and stagnation in many areas of the economy, the political scientist said.
The negotiations in Busan took place in a tense atmosphere. In addition to the fact that Washington and Beijing are, in fact, in a state of trade war, Donald Trump announced US plans to resume nuclear tests before the start of the conversation. This is an unprecedented step, which, of course, does not strengthen the already fragile architecture of international security. Therefore, the background for the dialogue was not the most optimal.
Meanwhile, Trump and Xi are completely opposite types of leaders. The first one is eccentric, emotional, and spontaneous. The second one is calm, taciturn and does not overreact towards colleagues. The difference in temperament was noticeable at the meeting, in particular, during the handshake: the American leader talked a lot, his facial expressions were active, Xi did not make sudden movements, looked ahead, periodically glancing at his colleague, who talked about excellent relations with the Chinese leader, and then, apparently jokingly, called the chairman The republic is a "tough negotiator." On the part of Trump, at first glance, there was a slight anxiety — at the same time, the head of the White House did not use his favorite method of a long handshake with the leader of the PRC.
The negotiations were held in the presence of the delegations of the two countries. Trump, in particular, was accompanied by Secretary of State Marco Rubio and Finance Minister Scott Bessent, Xi Jinping was accompanied by Foreign Minister Wang Yi, as well as Vice Premier of the State Council He Lifeng. There are a total of seven people on each side.
The tone of the negotiations, at least in the open part, was very friendly. Even the eloquence typical of the East was used.
"In the face of winds, waves and challenges, you and I, standing at the helm of Sino-American relations, must maintain the right course and ensure the steady progress of the giant ship of Sino-American relations," Xi Jinping said.
He was trying to convey to the American president the idea that contradictions between the two largest economies are a completely normal process. But it must not escalate into hostility. China's development and rebirth go hand in hand with Donald Trump's goal of making America great again, the Chinese president is confident.
Moreover, Xi flattered Trump to some extent by listing his successes in the international arena: the truce in Gaza and the agreements that allowed the conflict between Thailand and Cambodia to end. It seemed that these words were not an empty word for the American leader: if his efforts were not appreciated by the Nobel Committee, then at least his colleagues noticed.
"President Xi is a great leader of a great country. I am sure that we will have a wonderful relationship for a long time," Trump said.
The results of the talks between the leaders of the United States and China
The conversation eventually lasted less than two hours, although the American media initially bet that it could take at least twice as long. At the same time, after the talks, Trump and Xi did not make joint statements to the press.
Nevertheless, the American president positively characterized the meeting on board the plane, and the Chinese chairman said that trade and economic ties should remain the driving force of relations between China and the United States, and not be a stumbling block.
In April, Trump wants to visit China, and then he expects the visit of the Chinese president. At the same time, the republic will host the APEC summit next year, and the United States will host the G20. The main outcome of the negotiations was the positive developments in trade between the two countries. According to Trump, US duties against China will remain at 47%. This means that the US administration will not raise tariffs to 100% from November 1.
The parties apparently managed to make progress on the issue of supplies of rare earth metals from China. "There are no more obstacles from China," Trump stressed. Earlier, Beijing decided to tighten the rules for the export of rare earth metals, which American producers need. This was the trigger for the US threats to increase duties on products from this country. Such an acute reaction is due to the fact that China accounts for 90% of the world's production of rare earths, which are needed for the development of high technologies, including in the military sphere. The PRC, in fact, has a kind of monopoly in this area.
Thus, there was hope that the trade war between the countries, which broke out with renewed vigor after the return of Donald Trump to the White House, would not continue. At its peak, the size of duties between states reached 145% and 125%, respectively. Then, against the background of diplomatic efforts, both countries began to lower their rates.
However, the United States has claims against China not only because of the imbalance in bilateral trade, but also because of the illegal supply of fentanyl, a powerful synthetic opioid painkiller. This drug is stronger than heroin, and according to some reports, 200 Americans die from its overdose every day. China has managed to assure its American colleagues that the republic will strengthen its fight against the smuggling of dangerous substances. Against this background, Trump promised to reduce duties from 20% to 10%, which were introduced separately.
— It is necessary to separate the "universal duties" and those related to products related to fentanyl. Fighting it is a parallel track that is not related to trade imbalances.
The United States pays special attention to countering smuggling through other countries, primarily Mexico and Canada," Nikolai Marchenko, a Sinologist, explained to Izvestia.
Nevertheless, no comprehensive trade agreement has been announced, which Washington could initially expect, HSE analyst Tigran Meloyan tells Izvestia.
— Additionally, the absence of a joint press conference following the summit is highlighted, which may also indicate the absence of a significant breakthrough for both sides. In principle, the meeting was designed to reduce tensions, rather than immediately resolve all existing trade disputes," the expert noted.
At the same time, the plans to hold additional talks between the two leaders indicate that work on resolving trade disputes will continue, Meloyan noted.
— The parties will have to meet more than once to come to more concrete and substantial results. In this context, Trump's announcement of the possibility of signing a trade agreement for a year is an attempt to delay the long—running negotiations on duties," Nikolai Marchenko summed up.
Of the fundamental changes, the transformation of official American rhetoric should be highlighted. The US approach to China has been significantly filled with the idea of accepting coexistence, which was unthinkable during Trump's first presidential term. The White House is now literally talking about the "Big Two" (G2), which has essentially become a recognition of equality, Tigran Meloyan added.
Trump and Xi discuss Ukraine crisis
At the talks in South Korea, the American and Chinese sides also discussed Ukraine. According to Trump, they agreed to work together to end the conflict. Moreover, the American leader made a very strange statement that sometimes "the parties should be allowed to fight."
Washington believes that China is capable of influencing the Russian leadership, which, according to the Americans, will then make concessions in the settlement process.
In particular, the United States is trying to push some countries to abandon energy purchases from the Russian Federation. According to the logic of the United States, thanks to the sale of oil or gas, Moscow receives large revenues, which then go to the development of the armed forces. However, even before the talks, Beijing made it clear that Russian-Chinese cooperation is not directed against third countries and the West definitely should not interfere in the bilateral dialogue. As a result, Trump stated in an interview with reporters aboard Air Force One that the topic of oil supplies from Russia to China had not been raised.
China has not made any specific promises or comments on the crisis in Ukraine, and the words about working together to resolve it came exclusively from Trump's lips, Tigran Meloyan draws attention. Officially, Beijing has never hidden its commitment to an early peaceful settlement, but not through pressure on any of the parties, which is more typical of the Trump administration, the expert said.
Perhaps having failed to weaken the strategic alliance between Russia and China during his meeting with Vladimir Putin in Alaska, Trump is now trying to do the same with the Chinese side, tempting Beijing with the Big Two format, Meloyan concluded.
Переведено сервисом «Яндекс Переводчик»
