US President Donald Trump and Chinese President Xi Jinping held a face-to-face meeting, their first in six years, resulting in announcements of commitments aimed at addressing trade issues. No formal trade agreement was reached during the discussions.
Meeting Overview
President Trump described his meeting with President Xi Jinping as "amazing." Beijing stated that both sides reached a consensus to resolve "major trade issues." The meeting followed a truce agreed upon in May, which addressed prior tariffs imposed by both nations.
US and China Commitments
- Rare Earths: China agreed to suspend export control measures it had placed on rare earths, which are components for various products including smartphones and fighter jets.
- Agricultural Products: President Trump announced that China would immediately begin purchasing a "tremendous amounts of soybeans and other farm products." Tariffs imposed by Beijing had previously reduced US soybean imports.
- Fentanyl-Related Tariffs: The US stated it would drop a portion of the tariffs it had levied on Beijing related to the flow of fentanyl ingredient chemicals to the US. The US had previously imposed tariffs on trade partners regarding their management of fentanyl-related substances.
- Nvidia Access: According to President Trump, Beijing will be able to communicate with Jensen Huang, the head of US tech firm Nvidia. Nvidia produces AI chips, an area where the US has sought to limit China's access citing national security concerns.
- Presidential Visit: Beijing extended an invitation for President Trump to visit China in April.
Remaining Issues
- TikTok: No specific announcements were made regarding TikTok. The US has sought to separate the video-sharing app's US operations from its Chinese parent company, ByteDance, citing national security.
- Tariffs: Other tariffs, which are taxes on imported goods, are expected to remain in place. This indicates that goods from China imported into the US are still subject to taxation at a rate exceeding 40% for US importers.