Trump and Xi's South Korea Summit: Navigating the Trade Tensions

U.S. President Donald Trump plans to meet Chinese leader Xi Jinping in South Korea to address escalating trade tensions. Both sides issued tariff threats following China's expanded export controls on rare earths. Despite a tough rhetoric, U.S.-China communications remain open as they explore resolution avenues.

The United States and China are poised for high-stakes discussions as President Donald Trump and Chinese leader Xi Jinping prepare to meet in South Korea. The meeting aims to navigate tense trade relations, heightened after China's move to expand export controls on rare earth elements last week.

U.S. Treasury Secretary Scott Bessent confirmed the meeting plans while stressing efforts from both sides to prevent a return to all-out trade conflict. Despite recent threats, including Trump's tariff hike announcement on Chinese goods, there remains a focus on negotiation.

The situation underscores the precarious balance in U.S.-China relations. Both governments continue to project strong stances, suggesting readiness for confrontation if necessary, but emphasizing ongoing dialogue. Optimism fluctuated in global markets, reflecting hopes and fears of the trade environment's future trajectory.

(With inputs from agencies.)