US-China talks mark progress but no formal trade agreement reached

Shiva K Dhakal
National Press Corporation(NPC)

United Kingdom—US President Donald Trump has described his long-awaited meeting with Chinese leader Xi Jinping as “amazing”, after the two held talks in South Korea aimed at easing tensions between the world’s two largest economies.

It was the first meeting between the two leaders in six years, and both sides suggested progress had been made. Beijing said they had reached a “consensus” on resolving key trade issues, though no formal agreement was signed.

Relations between Washington and Beijing have been strained since Trump reintroduced tariffs on Chinese goods — a move that sparked a trade war and retaliatory measures from China. While a temporary truce was reached in May, tensions have remained high.

During Thursday’s talks, Trump said China had agreed to lift export restrictions on rare earth minerals — critical components used in electronics and defence industries. He also claimed Beijing would “immediately” resume large-scale purchases of American soybeans and other agricultural goods, offering relief to US farmers who have been hit hard by the trade dispute.

However, there was no breakthrough on the future of TikTok, the Chinese-owned video app facing pressure from Washington over national security concerns. Beijing said further discussions would continue.

The US has meanwhile agreed to ease some tariffs linked to the flow of fentanyl-related chemicals from China, but other tariffs — which currently result in more than 40% tax on some imports — will remain in place.

Trump also announced that China would open talks with Nvidia CEO Jensen Huang, whose company sits at the centre of the global competition over advanced AI chips. Washington has sought to restrict China’s access to high-end semiconductor technology.

In a further sign of thawing relations, Xi has invited Trump to visit Beijing in April, a move seen by analysts as part of China’s effort to stabilise ties ahead of broader trade negotiations.