2025 for January 1970

At the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, US President Donald Trump and Chinese President Xi Jinping met for the first time since Trump’s return to office.
Trump announced that China agreed to maintain global exports of rare earth minerals under a one-year deal, calling it a “worldwide solution.” He said this would remove supply worries for industries dependent on these materials.
Additionally, the US will reduce tariffs on China—cutting the penalty on fentanyl-related trade from 20% to 10%, bringing the overall tariff rate down from 57% to 47%.

The meeting was its carefully managed optics. Unlike his usual confrontational style, President Trump adopted a polite and diplomatic tone, showing awareness of China’s global influence.
Interestingly, China did not immediately release an official account of the meeting, highlighting its cautious approach.

Trump referred to the meeting as “G-2”, equating the US–China relationship to elite global groupings like the G-7 and G-20.
This was seen as a symbolic recognition of China’s global power, something no previous US president had done publicly — a clear diplomatic win for Beijing.

Both leaders showed mutual deference and restraint, a departure from Trump’s usual brashness.
Their conduct reflected a shared understanding of the delicate balance between the world’s two largest economies and the global impact of their relationship.

The key takeaway from the Trump–Xi meeting was about rare earth exports.
President Trump announced that China had agreed to continue exporting rare earth minerals for one year — a relief for global industries that depend on them.
In return for China’s cooperation, Trump cut tariffs on Chinese goods by 10%, lowering total US tariffs from 57% to 47%.
This move was meant to ease pressure on Chinese businesses and encourage Beijing to compromise.
While the agreement eased tensions, it only postponed the core issue — China still dominates the rare earth supply chain.
The deal gives the US and its allies more time to diversify sources and reduce dependency on China.

In his first term (2017), Trump took a hard stance on China, calling it a strategic rival, strengthening alliances, and supporting frameworks like the Quad and Indo-Pacific strategy, where India played a central role.
Now, in his second term, Trump’s approach is commercial, focusing on trade deals and domestic investments, even pressuring allies like Japan and South Korea to invest heavily in the US.
After the meeting, US President left behind a sense of uncertainty about America’s future with China — the world’s two largest powers.
Calling his meeting with Xi Jinping a “G-2” summit, Trump sparked concern among allies that the US is leaning toward a China-first, business-focused policy.

For India, the message was clear: the US focus remains on managing China.
The question now is whether Trump prefers working with allies like India, Japan, and Australia (under the Quad) or handling China alone.
For India and other Asian nations, this marks a new phase in US–China relations — a mix of competition and cooperation.

After Trump reduced tariffs on China to 47%, India now has the highest tariff rate at 50%, putting it at a trade disadvantage.
This makes a US–India trade deal more urgent, especially since Trump said one could be finalized en route to South Korea.
Until then, a US rival (China) enjoys better trade terms than a US partner (India).

As Trump’s trade-driven strategy reshapes the region, India must rethink its assumptions about both American intent and Chinese ambition, while identifying space for its own strategic autonomy.
For India, the challenge is to navigate this shifting US–China balance with agility.
Delhi must:
- Engage the US where interests align,
- Explore economic opportunities with China where possible, and
- Deepen partnerships with Asia and Europe to strengthen its independent position.

Source: TH | IE | IE

Xi–Trump Meeting FAQs

Q1: What was the key outcome of the Xi–Trump meeting?

Ans: China agreed to continue rare earth exports for a year, while the US reduced tariffs on Chinese goods by 10%.

Q2: Why is the rare earth deal significant?

Ans: It temporarily eases global supply concerns but leaves China’s dominance in critical minerals largely intact.

Q3: How did Trump describe the meeting?

Ans: He called it “G-2,” signaling acknowledgment of China’s global power — a symbolic win for Beijing.

Q4: What does this meeting mean for India?

Ans: India must adapt to a new US–China balance of competition and cooperation, rethinking its strategic and trade assumptions.

Q5: Why are allies cautious about Trump’s approach?

Ans: His business-first stance and reduced tariffs for China create doubts about America’s reliability as a strategic partner in Asia.