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US and China Strike Partial Trade Pact on Fentanyl and Minerals

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Trump and Xi Hold “Amazing” Meeting During South Korea Summit

Donald Trump, the President of the United States, and Xi Jinping, the President of China, met for 100 minutes in Gyeongju, South Korea. Both presidents said the meeting was useful, which means that progress was made on a number of trade and security concerns that have been causing problems.

Trump claimed the talk was “amazing” and gave it a “12 out of 10.” He also predicted a big trade agreement might happen shortly. The encounter was the first time the two had met in person since Trump came back to the White House.

Source: CNN

Fentanyl Tariff Slashed in Exchange for Crackdown on Exports

Trump said that he will drop the tax on Chinese items that contain fentanyl from 20% to 10% right away. Xi promised to work more to stop the export of precursor chemicals that are making the opioid epidemic worse in exchange.

Trump stated on Air Force One that Xi had “agreed to work very hard to stop the death that is coming in.” He went on to say that the action showed that both sides were committed to dealing with one of the world’s worst drug problems.

China Delays Rare Earth Export Controls to Stabilize Trade

China decided to put off putting additional limits on the export of rare earth materials that are important for making technology. People saw the gesture as a big step toward developing trust and lowering tensions between the two economic titans.

Xi said that trade should not be a “stumbling block” in China-US ties, but rather a “ballast and propeller.” The deal is likely to make things less unclear in global supply networks for electronics and defense materials.

Recommended Article: China and U.S. Find Economic Common Ground After Tense Talks

TikTok Negotiations and Broader Trade Framework Advance

Trump didn’t talk about TikTok in his speech, but later authorities said that China had given its first assent to a plan to settle ownership difficulties. Scott Bessent, the Secretary of the Treasury, indicated that the last details will be worked out in the next several weeks.

It is said that the larger trade framework includes deals on agricultural imports, access to markets, and ongoing talks about how to regulate technology. Both parties said the meetings were more about practical matters than ideas, and they wanted “measured de-escalation.”

No Policy Shift on Taiwan as Talks Remain Focused on Trade

Trump indicated that Taiwan was not talked about at the meeting, even though there had been rumors about it. Officials in the White House were worried that he may shift the US’s long-standing stance in return for concessions from China.

Analysts said that by not including Taiwan on the agenda, the administration kept its plans unclear. This kept trade talks on track and strengthened US alliances in the Asia-Pacific region.

Experts Say Trump–Xi Talks Focus More on Optics Than Real Progress

Analysts in the area suggested that both sides were more interested in optics and slow development than in big achievements. Zeng Jinghan from City University of Hong Kong said the conversations were a step toward “a little bit of de-escalation.”

Miles Yu, who used to work for the US State Department, stated that the US was “sizing up China” by being careful with its actions. He said that Trump’s threats of tariffs gave him power, but he also said that major structural problems were still not fixed.

Trump’s Pragmatic Diplomacy Balances Pressure and Partnership

Trump’s journey to Malaysia, Japan, and South Korea showed how he does foreign policy: he uses tariffs to achieve what he wants and makes specific concessions. During the five-day journey, he inked a number of agreements for military and investment.

Trump noted that doing things “the opposite way of almost everybody” often works. His words showed that he believed that unconventional diplomacy might lead to real results in complicated global talks.

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