SEOUL: President Donald Trump described his face-to-face with Chinese leader Xi Jinping on Thursday as a roaring success, saying he would cut tariffs on China, while Beijing had agreed to allow the export of rare earth elements and start buying American soybeans.
The president told reporters aboard Air Force One that the US would lower tariffs implemented earlier this year as punishment on China for its selling of chemicals used to make fentanyl from 20 percent to 10 percent. That brings the total combined tariff rate on China down from 57 percent to 47 percent
“I guess on the scale from 0 to 10, with ten being the best, I would say the meeting was a 12,” Trump said. “I think it was a 12.”
Trump said that he would go to China in April and Xi would come to the US “some time after that.” The president said they also discussed the export of more advanced computer chips to China, saying that Nvidia would be in talks with Chinese officials.
Trump said he could sign a trade deal with China “pretty soon.”
“We have not too many major stumbling blocks,” Trump said.
Sources of tension remain
Despite Trump’s optimism after a 100-minute meeting with Xi in South Korea, there continues to be the potential for major tensions between the world’s two largest economies. Both nations are seeking dominant places in manufacturing, developing emerging technologies such as artificial intelligence, and shaping world affairs like Russia’s war in Ukraine.
Trump’s aggressive use of tariffs since returning to the White House for a second term, combined with China’s retaliatory limits on exports of rare earth elements, gave the meeting newfound urgency. There is a mutual recognition that neither side wants to risk blowing up the world economy in ways that could jeopardize their own country’s fortunes.
When the two were seated at the start of the meeting, Xi read prepared remarks that stressed a willingness to work together despite differences.
“Given our different national conditions, we do not always see eye to eye with each other,” he said through a translator. “It is normal for the two leading economies of the world to have frictions now and then.”
There was a slight difference in translation as China’s Xinhua News Agency reported Xi as telling Trump that having some differences is inevitable.
China did not provide immediate comment on the meeting or any outcomes.
Finding ways to lower the temperature
The leaders met in Busan, South Korea, a port city about 76 kilometers (47 miles) south from Gyeongju, the main venue for the Asia-Pacific Economic Cooperation summit.
In the days leading up to the meeting, US officials signaled that Trump did not intend to make good on a recent threat to impose an additional 100 percent import tax on Chinese goods, and China showed signs it was willing to relax its export controls on rare earths and also buy soybeans from America.
Officials from both countries met earlier this week in Kuala Lumpur to lay the groundwork for their leaders. Afterward, China’s top trade negotiator Li Chenggang said they had reached a “preliminary consensus,” a statement affirmed by US Treasury Secretary Scott Bessent who said there was ” a very successful framework.”
Shortly before the meeting on Thursday, Trump posted on Truth Social that the meeting would be the “G2,” a recognition of America and China’s status as the world’s biggest economies. The Group of Seven and Group of 20 are other forums of industrialized nations.
But while those summits often happen at luxury spaces, this meeting took place in humbler surroundings: Trump and Xi met in a small gray building with a blue roof on a military base adjacent to Busan’s international airport.
The anticipated detente has given investors and businesses caught between the two nations a sense of relief. The US stock market has climbed on the hopes of a trade framework coming out of the meeting.
Pressure points remain for both US and China
Trump has outward confidence that the grounds for a deal are in place, but previous negotiations with China this year in Geneva, Switzerland and London had a start-stop quality to them. The initial promise of progress has repeatedly given way to both countries seeking a better position against the other.
“The proposed deal on the table fits the pattern we’ve seen all year: short-term stabilization dressed up as strategic progress,” said Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies. “Both sides are managing volatility, calibrating just enough cooperation to avert crisis while the deeper rivalry endures.”
The US and China have each shown they believe they have levers to pressure the other, and the past year has demonstrated that tentative steps forward can be short-lived.
For Trump, that pressure comes from tariffs.
China had faced new tariffs this year totaling 30 percent, of which 20 percent were tied to its role in fentanyl production. But the tariff rates have been volatile. In April, he announced plans to jack the rate on Chinese goods to 145 percent, only to abandon those plans as markets recoiled.
Then, on Oct. 10, Trump threatened a 100 percent import tax because of China’s rare earth restrictions. That figure, including past tariffs, would now be 47 percent “effective immediately,” Trump told reporters on Thursday.
Xi has his own chokehold on the world economy because China is the top producer and processor of the rare earth minerals needed to make fighter jets, robots, electric vehicles and other high-tech products.
China had tightened export restrictions on Oct. 9, repeating a cycle in which each nation jockeys for an edge only to back down after more trade talks.
What might also matter is what happens directly after their talks. Trump plans to return to Washington, while Xi plans to stay on in South Korea to meet with regional leaders during the Asia-Pacific Economic Cooperation summit, which officially begins on Friday.
“Xi sees an opportunity to position China as a reliable partner and bolster bilateral and multilateral relations with countries frustrated by the US administration’s tariff policy,” said Jay Truesdale, a former State Department official who is CEO of TD International, a risk and intelligence advisory firm.
Trump cuts tariffs on China after meeting Xi in South Korea
https://arab.news/8jr97
Trump cuts tariffs on China after meeting Xi in South Korea
- Trump said he has decided to lower tariff rates on Chinese goods to 47 percent after talks with Xi Jinping on curbing fentanyl trafficking
- Beijing also agreed to allow the export of rare earth elements and start buying American soybeans
Starvation fears as flood toll passes 900 in Indonesia
- More than 1,790 people have been killed in natural disasters unfolding across Southeast Asia over the past week
- Floods have swept away roads, smothered houses in silt, and cut off supplies in Indonesia's provinces of Aceh and North Sumatra
BANDA ACEH, Indonesia: Ruinous floods and landslides have killed more than 900 people on Indonesia’s island of Sumatra, the country’s disaster management agency said Saturday, with fears that starvation could send the toll even higher.
A chain of tropical storms and monsoonal rains has pummelled Southeast and South Asia, triggering landslides and flash floods from the Sumatran rainforest to the highland plantations of Sri Lanka.
More than 1,790 people have been killed in natural disasters unfolding across Indonesia, Sri Lanka, Malaysia, Thailand and Vietnam over the past week.
In Indonesia’s provinces of Aceh and North Sumatra, floods have swept away roads, smothered houses in silt, and cut off supplies.
Aceh governor Muzakir Manaf said response teams were still searching for bodies in “waist-deep” mud.
However, starvation was one of the gravest threats now hanging over remote and inaccessible villages.
“Many people need basic necessities. Many areas remain untouched in the remote areas of Aceh,” he told reporters.
“People are not dying from the flood, but from starvation. That’s how it is.”
Entire villages had been washed away in the rainforest-cloaked Aceh Tamiang region, Muzakir said.
“The Aceh Tamiang region is completely destroyed, from the top to the bottom, down to the roads and down to the sea.
“Many villages and sub-districts are now just names,” he said.
Aceh Tamiang flood victim Fachrul Rozi said he had spent the past week crammed into an old shop building with others who had fled the rising waters.
“We ate whatever was available, helping each other with the little supplies each resident had brought,” he told AFP. “We slept crammed together.”
Aceh resident Munawar Liza Zainal said he felt “betrayed” by the Indonesian government, which has so far shrugged off pressure to declare a national disaster.
“This is an extraordinary disaster that must be faced with extraordinary measures,” he told AFP, echoing frustrations voiced by other flood victims.
“If national disaster status is only declared later, what’s the point?“
Declaring a national disaster would free up resources and help government agencies coordinate their response.
Analysts have suggested Indonesia could be reluctant to declare a disaster — and seek additional foreign aid — because it would show it was not up to the task.
Indonesia’s government this week insisted it could handle the fallout.
Climate calamity
The scale of devastation has only just become clear in other parts of Sumatra as engorged rivers shrink and floodwaters recede.
AFP photos showed muddy villagers salvaging silt-encrusted furniture from flooded houses in Aek Ngadol, North Sumatra.
Humanitarian groups worry that the scale of the calamity could be unprecedented, even for a nation prone to natural disasters.
Indonesia’s death toll rose to 908 on Saturday, according to the disaster management agency, with 410 people missing.
Sri Lanka’s death toll jumped on Friday to 607, as the government warned that fresh rains raised the risk of new landslides.
Thailand has reported 276 deaths and Malaysia two, while at least two people were killed in Vietnam after heavy rains triggered a series of landslides.
Seasonal monsoon rains are a feature of life in Southeast Asia, flooding rice fields and nourishing the growth of other key crops.
However, climate change is making the phenomenon more erratic, unpredictable and deadly throughout the region.
Environmentalists and Indonesia’s government have also suggested that logging and deforestation exacerbated landslides and flooding in Sumatra.
