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Featured Article ********* Xi-Trump Summit 2025: Analyzing the Busan Meeting and Its Global Implications --------------------------------------------- US President Trump and Chinese counterpart Xi met in Busan, South Korea, during the APEC summit on October 30, 2025. Their goal was to negotiate a way to ease the trade war. The Xi-Trump meeting held on October 30, 2025, in Busan, South Korea, marked a turning point in international relations. This bilateral summit, conducted on the sidelines of the APEC summit, brought together the leaders of the world's two largest economies after months of tension. With US-China relations at a critical juncture, the Busan talks addressed issues ranging from US-China tariffs to technological competition and supply chain vulnerabilities involving rare earths. Background: Road to Busan The months before the Xi-Trump meeting were characterized by economic confrontation. Since President Trump's return to office for his second term, the administration has pursued an aggressive trade policy, threatening tariffs as high as 145% on Chinese imports. China retaliated with tariff rates reaching 125%. The trigger for the summit was a series of moves in October 2025. President Trump unveiled levies of 100% on China's U.S.-bound exports, coupled with new export controls on critical software. In response, Beijing imposed controls on rare earths exports, materials essential for everything from smartphones to military equipment. China dominates this sector, controlling 70% of global mining, 90% of processing, and 93% of permanent magnet manufacturing. This escalation had implications for the global economy. Chinese stocks fluctuated, investors grew anxious, and the world faced the prospect of complete decoupling between the two economic powers. The Busan meeting became essential for bilateral relations and global economic stability. Economic Agreements: Tariff Reductions and Trade Concessions The summit's outcome was a one-year agreement to de-escalate trade tensions. President Trump announced tariff reductions, cutting fentanyl-related tariffs from 20% to 10%, linking this concession to China's commitment to curb exports of fentanyl precursor chemicals. Overall, US-China tariffs were set to drop from 57% to 47%, providing relief for businesses and supply chains strained by months of uncertainty. Beyond tariff adjustments, the agreement included specific elements. China committed to making purchases of U.S. agricultural products, offering relief to American farmers who had suffered under Chinese trade restrictions. President Xi emphasized that trade negotiators had reached a "basic consensus" on a deal, while noting that China's development does not contradict Trump's "Making America Great Again" vision. This framing suggested both sides sought to present the agreement as mutually beneficial rather than zero-sum. Rare Earths Leverage Perhaps the most significant strategic dimension of US-China relations highlighted by the summit was China's deployment of rare earths as economic leverage. Weeks before the meeting, Beijing had imposed export controls on rare earth minerals and permanent magnets, applying the Foreign Direct Product Rule (FDPR), a regulatory mechanism used by Washington to restrict semiconductor exports. This move marked an evolution in economic competition. China mirrored America's coercive legal tools, transforming its resource advantage into a weaponized chokepoint. Under these rules, foreign firms must obtain Chinese government approval to export magnets containing even trace amounts (0.1%) of Chinese-origin heavy rare earth materials. The summit achieved a temporary deferral of China's threatened export controls, allowing the U.S. to avoid imposing its 100% tariff threat. While the Trump administration presented this as a diplomatic victory, it confirmed China's dominance over critical materials supply chains and its ability to leverage this position. *********