The upcoming meeting between Donald Trump and Xi Jinping at the Asia Pacific Economic Cooperation summit could mark a pivotal moment in US-China relations, which have been strained since 2019 due to ongoing trade tensions. Key discussions are expected to focus on rare earth minerals and a potential trade deal that might lower tariffs on Chinese goods in exchange for Beijing's efforts to curb fentanyl production. The high tariffs, with China's averaging 32.6% on US exports and the US imposing 57.6% on Chinese exports, have been a significant point of contention.
Experts suggest a possible agreement on export controls for rare earths could benefit both nations economically. Despite Trump's optimism about achieving a 'great deal,' skepticism remains, particularly from Washington hawks concerned about Taiwan. Meanwhile, China is doubling down on its technological and industrial ambitions, aiming for global leadership in these sectors.
The potential for a new trade deal has caused fluctuations in global markets, with cryptocurrency markets responding positively to news of a 'basic consensus' being reached. As the two leaders prepare for their first face-to-face meeting since 2019, the world watches closely, hoping for a resolution that could ease months of economic turbulence.
