Trump left China saying “fantastic trade deals” had been reached and claimed the visit would be “great for both countries.” However, many of the biggest announcements still lack confirmation from Beijing.

Boeing Deal Emerges as Biggest Potential Win

One of the clearest outcomes involved Boeing. Trump said China agreed to purchase 200 aircraft, with discussions potentially expanding to another 750 planes. Boeing reportedly confirmed the arrangement.

If completed, it would become Boeing’s first major Chinese order in nearly a decade, marking a major comeback after years of trade tensions. Trump also said China would buy billions of dollars of US soybeans, aiming to support American farmers.

So far, Chinese officials have not confirmed those purchases publicly.

Tech CEOs Take Center Stage

Trade was important, but technology may have been the real story. The delegation included major names such as: Elon Musk, Jensen Huang

Their presence sparked speculation that AI chips, semiconductors, and technology access were larger topics than initially expected.

This matters because:

• Tesla depends heavily on China through its Shanghai operations
• Nvidia wants broader access to the Chinese market again

Trump later confirmed that AI discussions included possible “guardrails”, though details remained limited.

Tariffs Surprisingly Stayed Out of the Spotlight

Perhaps the biggest surprise: Trump said tariffs were not discussed.

Instead, both sides reportedly agreed to establish a new trade management framework, allowing communication without reopening direct tariff negotiations.

Questions still remain around the earlier tariff truce and rare-earth export arrangements that helped stabilize relations last year.

Taiwan Remains the Sensitive Issue

While trade dominated headlines, Taiwan remained one of the most delicate topics.

According to Chinese statements, Xi warned that Taiwan remains the most important issue in US-China relations and suggested mishandling it could increase tensions. That warning comes as semiconductors, AI, and advanced technology become increasingly tied to geopolitics.

Iran and Hormuz Enter the Conversation

The summit also touched on the Middle East. Trump said Xi expressed willingness to help support reopening the Strait of Hormuz, a critical global shipping route disrupted by the Iran conflict.

China later called for:

• A lasting ceasefire
• Reopening shipping routes
• Greater stability in global energy markets

The issue matters deeply for Beijing, as rising oil prices continue to pressure China’s economy.

The summit delivered:

Strong diplomatic symbolism
High-level business engagement
Potential aviation agreements

But it did not yet deliver a major trade breakthrough. For now, markets got optimism instead of certainty.

The next key moment may come in September, after Trump invited Xi to Washington for another summit that could decide whether these talks become real deals or remain promises.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Trump and Xi Wrap Up “Successful” China Summit, But Major Trade Questions Remain first appeared on Finblog.

The White House has indicated the summit could take place from March 31 to April 2, potentially extending the fragile trade truce between the world’s two largest economies. However, Chinese analysts say the agenda for the talks remains unclear.

“Usually, planning for this kind of visit would start months ahead,” said Wu Xinbo, dean of the Institute of International Studies at Fudan University in Shanghai. “But this time it started very late and it’s still very much in progress.”

According to Wu, Chinese officials still do not know what specific agreements or commercial deals Trump hopes to secure during the visit.

Business Leaders Still Waiting for Invitations

The uncertainty is also affecting American companies.

US business executives have not yet been invited to join the presidential delegation, according to Sean Stein, president of the US–China Business Council.

Major diplomatic visits to China typically include large business delegations because of the country’s economic importance.

For example, Germany’s chancellor Friedrich Merz recently traveled to Beijing with about 30 executives, while British Prime Minister Keir Starmer brought nearly 60 business leaders earlier this year.

“It’s hard to imagine the president is not going to want to have a robust delegation,” Stein said. “But so far invitations haven’t gone out.”

A White House spokesperson said invitations would be sent “when appropriate,” adding that it is normal for the United States not to finalize such plans until closer to the meeting.

Trade Truce Still Holding

The upcoming summit could be crucial for stabilizing US–China relations after tensions escalated last year.

The two countries clashed over Trump’s global tariffs, prompting China to respond by halting purchases of U.S. soybeans and restricting exports of rare earth minerals used by American manufacturers.

The dispute eased temporarily in October, when Trump and Xi met in Busan, South Korea, agreeing to a one-year trade truce.

US officials have since said the two leaders may meet up to four times this year as both sides attempt to prevent another trade conflict.

Pressure to Expand the Economic Agenda

American companies are pushing for the summit to deliver more concrete economic progress.

Business leaders want the talks to address issues such as:

• Greater access to Chinese markets
• Approval for U.S. genetically modified crops
• Expanded pharmaceutical exports
• Licensing approvals for U.S. financial firms operating in China

These changes could significantly expand U.S. business activity in China.

China Signals Support but Warns Against Tensions

China has not officially confirmed the summit dates yet, which analysts say is normal for Beijing. Still, China’s top diplomat Wang Yi suggested last week that preparations for high-level talks are underway.

“This year is a big year for China–U.S. relations,” Wang said. “The agenda of high-level exchanges is already on the table.”

At the same time, he warned that both countries should “manage risks and remove unnecessary disruptions.”

The comments appeared to signal concern that actions by Washington, such as arms sales to Taiwan, could jeopardize the meeting.

A Delicate Meeting Ahead

Despite the uncertainty surrounding the summit agenda, both governments appear eager to maintain stability in the relationship.

However, analysts say expectations in Beijing remain cautious. During Trump’s first state visit to China in 2017, Xi hosted him with elaborate ceremonies and even a private tour of the Forbidden City.

This time, some experts believe China may offer a more restrained reception.

“No matter how well you treat him,” Wu said, referring to Trump, “you cannot prevent him from changing his mind.”

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Trump’s Strait of Hormuz Plan Faces Major Challenges: What is next?

The post A Trump-Xi Summit Nears, but China Doesn’t Know What Trump Wants first appeared on Finblog.

Key Takeaways

• Tariffs Cut: The U.S. will halve fentanyl-related tariffs from 20% to 10%, cutting the overall US duty rate on Chinese imports from 57% to 47%. Broader tariff reductions take effect Nov. 10, 2025.
• Rare Earths Pause: China agreed to suspend new export controls on rare earth minerals, magnets, gallium, germanium, and graphite — effectively reversing curbs from April 2025 and October 2022.
• Farm Purchases Resume: Beijing will buy 12 million tons of US soybeans by year-end and 25 million tons annually through 2028, while resuming sorghum and hardwood imports.
• Fentanyl Crackdown: China pledged to curb precursor chemical flows and cooperate with U.S. enforcement groups in tracking fentanyl shipments, a major condition for the tariff relief.
• Tech & Ports: Both sides paused new export bans and shipping fees; the US will delay a planned blacklist expansion targeting Chinese affiliates and freeze port fees on Chinese-linked vessels for a year.

Inside the Deal

The White House said the pact “safeguards US economic strength and national security while putting American workers first.” China’s commitments include lifting retaliatory tariffs, ending non-tariff measures on U.S. industries, and reopening markets to major American exporters hit during the trade war.

Beijing also agreed to resume chip trade from Nexperia’s Chinese facilities and terminate investigations into U.S. semiconductor firms, a move expected to ease global supply-chain tension.

In return, Washington will extend Section 301 tariff exemptions through 2026 and suspend new export restrictions tied to China’s shipbuilding and logistics sectors.

Strategic Impact

Analysts see the deal as a temporary de-escalation rather than a lasting peace. Many commitments, including the rare earth pause and tariff cuts, expire by late 2026. Still, markets welcomed the move, viewing it as a sign that both leaders sought stability after months of supply-chain shocks and currency volatility.

Trump called the South Korea summit a “12 out of 10,” declaring:

“We have a deal. It’s historic — and it puts America first again.”

Xi’s delegation framed it as “a balanced step forward for global trade.”

What’s Next

The deal caps Trump’s Asia tour that also yielded trade agreements with Malaysia and Cambodia and investment pledges from Japan and South Korea.
Ongoing working groups will now set enforcement metrics on fentanyl controls and agricultural commitments — a test of whether the fragile détente can hold through 2026.

The Trump-Xi pact eases tariffs, opens farm trade, and pauses tech restrictions — but the real test begins in enforcement. As one analyst noted: “This isn’t the end of the trade war. It’s just the halftime whistle.”

Related: Trump–Xi Deal Marks a Pause in Trade War

The post Trump and Xi Strike ‘Historic’ Trade Deal: What is included first appeared on Finblog.

“As soon as we see that, we’ll get rid of the other 10%,” Trump said, confirming that the US has already reduced fentanyl-related tariffs from 20% to 10% as part of the deal struck in Seoul.

The agreement, which follows months of trade tension and mixed signals, represents the first concrete step toward de-escalation since Trump’s return to office reignited the tariff war between the world’s two largest economies.

What’s in the Deal

According to both sides, the new arrangement includes a mix of tariff relief, resource commitments, and diplomatic coordination:

• Fentanyl-related goods tariffs: Cut from 20% to 10%, with a full removal possible if China curbs exports.
• Overall tariff level: US duties on Chinese goods will drop to 47% from 57%.
• Rare earths: China will temporarily lift its export controls on critical minerals used in semiconductors and defense.
• Energy: Beijing will resume large-scale US energy purchases, including potential deals tied to Alaskan oil and gas.
• Agriculture: China will restart soybean imports “immediately”, according to Trump.
• Technology: The US will mediate talks between Beijing and Nvidia CEO Jensen Huang over China’s use of restricted AI chips.

Xi’s Response: Warning Against Fragmentation

In his first comments on the deal, Xi Jinping cautioned against “breaking supply chains”, signaling Beijing’s ongoing concern about Washington’s broader industrial policy.
While China welcomed the partial rollback of tariffs, Xi stressed that economic cooperation should not be used as leverage in political disputes.

The remarks underscore the delicate balance in China’s position: a willingness to cooperate on trade, while maintaining resistance to what it sees as US overreach in tech restrictions.

Markets React Cautiously

The announcement initially lifted sentiment across Asian markets on Friday, with Chinese energy and agriculture stocks rising modestly.
However, gains were muted as traders questioned whether the truce would last — particularly given the US Senate’s new resolutions seeking to roll back Trump’s country-specific tariffs, and an upcoming Supreme Court case challenging the legality of his broader tariff regime.

Meanwhile, Nvidia (NVDA) edged higher after Trump mentioned possible talks over chip exports, while commodity futures in soybeans and LNG saw slight upticks.

Analyst Take

Market strategists view the deal as symbolic but not yet structural.
Cutting fentanyl-related tariffs carries diplomatic value, but the broader framework still leaves most of the 47% average tariffs intact.

“This is less a truce than a timeout,” said one Asia-based economist. “It shows both sides are testing a softer tone, but neither is ready to fully dismantle their tariff walls.”

What Comes Next

The Trump administration said it will monitor China’s compliance “in real time,” while Beijing’s commerce ministry is expected to issue new export guidance next week.
A follow-up meeting between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng is reportedly planned for November to discuss enforcement details and AI-sector carve-outs.

The Trump–Xi Seoul deal may mark a turning point — but not the end — of the tariff era.
While both leaders struck a conciliatory tone, the political and legal crosscurrents surrounding Trump’s trade policy mean the détente could easily unravel if either side backtracks.

Related: What the Trump-Xi deal means for stability and markets

The post Trump–Xi Deal Marks a Pause in Trade War first appeared on Finblog.

Key Agreements

• The US will reduce tariffs on Chinese imports from ~57% to ~47% overall.
• The “fentanyl‑related” tariff on Chinese goods (previously ~20%) will be cut to ~10% immediately.
• China agrees to resume purchasing U.S. agricultural products (notably soybeans) and to ease export controls on rare earth elements and critical minerals for at least one year
• Trump said China and US would discuss chip‑export restrictions and indicated that U.S. company Nvidia may enter talks with Chinese counterparts
• Both leaders signalled a potential broader cooperation on geopolitical issues including the Ukraine conflict.
• They agreed to high‑level reciprocal visits: Trump plans to visit China in April 2026; Xi will visit the U.S. “some time after that”.

Trump described the meeting as “amazing” and rated it “12 out of 10”.

Why This Matters

Trade and tariffs

• Bringing tariff average down to ~47% is a substantial de‑escalation. It signals a thaw in the trade war and may lower cost pressures for U.S. importers and consumers.
• The reduction of the fentanyl‑linked tariff shows trade policy linking to non‑trade issues (drug control) — a new angle in US–China relations.
• Rare‑earths and critical‑minerals deal is notable: China has vast control in that space and U.S. industries (military, high‑tech, EVs) are sensitive to supply disruptions. The one‑year deferral gives breathing room.

Tech & strategic implications

• The reference to Nvidia and chip talks suggests that U.S. tech firms may see easier access to China, though major export control frameworks (especially high‑end AI chips) likely still remain contested.
• The fact that strategic/geopolitical topics (Ukraine, rare earths) were raised indicates this is more than a simple trade deal — this may signal a broader shift in how U.S. and China engage.

What’s Still Unclear / Watch‑Points

While Xi and Trump reached broad agreement, no full comprehensive deal has been signed yet; many details remain to be finalised.

Key strategic issues like Taiwan, high‑end semiconductor export controls, full rare earth liberalisation were less emphasised or omitted.

The “one‑year” nature of the rare earths deal suggests this may be a temporary pause rather than a permanent fix.

Markets may have already “priced in” some of the positive scenario; hence, future upside may be limited if deliverables lag.

Implementation risk: China or U.S. may under‑deliver. The framework demands rigorous follow‑through.

What’s Next

• Expect an agreement signature possibly as soon as next week according to U.S. Treasury Secretary Scott Bessent.
• Watch for chip export/tech trade regulations, particularly whether U.S. firms gain broader access to Chinese market (and vice‑versa) and how U.S. export‑control regimes adapt.
• Monitor rare earths/minerals flows, supply‑chain changes and pricing in high‑tech sectors (EVs, batteries, semiconductors).
• Agricultural‑trade flows: Will China ramp up U.S. soybeans/sorghum purchases? That will matter for U.S. farm income and rural sentiment.
• Keep an eye on geopolitical shifts: how U.S.–China cooperation (or competition) evolves on Ukraine, AI, military tech.
• Markets: Risk that the “deal done” narrative is ahead of actual execution. Investors should temper expectations for immediate large gains and focus on implementation signals.

The meeting between Trump and Xi marks a significant de‑escalation in the U.S.–China trade war. The tariff cuts, rare‑earth deal, and agricultural commitments are meaningful. But this should not yet be seen as a “final” peace — many strategic risks remain, implementation is key, and both sides maintain leverage. For businesses and investors, this opens opportunities (e.g., easier trade flows, reduced supply‑chain risk) but also calls for caution: the path ahead still has bumps.

The post Trump cuts tariffs on China after meeting Xi in South Korea first appeared on Finblog.

“The president is obsessed with having a call with Xi,” said a source familiar with the negotiations, adding Trump believes he can solve the $600 billion trade impasse “mano a mano.”

The White House confirmed this week that a Trump-Xi call is “likely,” although no date has been officially set. The push comes as trade negotiations stall despite a temporary Geneva truce that had lowered tariffs on both sides. But since then, mistrust and unmet expectations have derailed progress.

Fragile Truce Already Fraying

• Tariff Deal Recap: In May, the US agreed to reduce tariffs from 145% to 30%, while China cut its own to 10% and promised to ease restrictions on rare earth exports, a critical supply for US automakers, tech firms, and defence industries.
• But now, Chinese shipments of rare earth magnets have slowed, triggering warnings from automakers about possible factory shutdowns.
• Meanwhile, China accuses the US of violating the 90-day de-escalation agreement by issuing new export warnings targeting Huawei and discouraging US firms from using Chinese semiconductors.

Fentanyl Deadlock

A key unresolved issue is fentanyl. Chinese officials say they’ve presented two proposals since February to tackle precursor shipments. But US officials remain skeptical, and no formal response has been issued.

“Everyone agrees that for any additional progress to happen on tariffs, the gateway is fentanyl,” said a US business official.

Xi Seen as Cautious, Trump as Unpredictable

Beijing remains wary of direct leader-level diplomacy with Trump, whom it sees as volatile and performative. Past episodes — like Trump’s media-centric meetings with Zelenskyy and Ramaphosa — have raised fears of public spectacle.

“The PRC sees President Trump as unpredictable,” said Rush Doshi, a former White House official. “It’s not usual practice for PRC diplomats to put their leader in a risky or potentially embarrassing position.”

Strategic Risks and Political Theater

While Trump insiders argue a call is a low-risk, high-reward move — either China cooperates or Trump can blame Beijing for obstruction — foreign policy experts warn that jumping to a leader-level discussion too soon could undermine future negotiations.

“Trump is a dealmaker. Xi is not — he’s a party man,” said Harry Broadman, a former US trade official. “At best, they agree on vague principles. That’s not going to satisfy Trump.”

Despite internal pressure, no call is yet scheduled, and China has not confirmed any plans to engage. Instead, Beijing has issued pointed rebukes, accusing the US of “stirring up new economic and trade frictions” and failing to reflect on its own behaviour.

The clock is ticking: automakers are warning of supply disruptions, investor confidence is shaky, and geopolitical tensions are intensifying. Whether Trump’s personal diplomacy can deliver results — or deepen the divide — remains to be seen.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post Trump and Xi are likely to speak this week, as Trump pushes for ‘mano a mano’ reset first appeared on Finblog.

• Unexpected Outreach:
  The call, initiated by Trump, marks one of the few direct interactions between the two leaders since tensions between the U.S. and China began escalating over trade, technology, and military activities.
• Topics Discussed:
  • Taiwan Relations: Both sides addressed their differing views on Taiwan, with Trump reportedly urging for stability in the region.
  • Economic Cooperation: Discussions included potential ways to revive trade talks and address mutual economic concerns.
  • Military Posture: The leaders reportedly touched on reducing military provocations in the South China Sea.
• Tone of the Call:
  Reports suggest the conversation was candid but constructive, with both leaders expressing a willingness to explore dialogue despite ongoing disagreements.

This interaction comes at a time when U.S.-China relations are under intense scrutiny, with ongoing disputes over Taiwan, trade tariffs, and technological decoupling. Analysts view the call as a potential step toward reducing hostilities, though the long-term impact remains uncertain.

The phone call between Xi Jinping and Donald Trump highlights the complex relationship between the world’s two largest economies. While significant challenges persist, the dialogue may signal a willingness to address critical issues and seek common ground in the future.

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