Busan, Oct 30 In a major step towards easing ongoing trade tensions, US President Donald Trump on Thursday announced that he and Chinese President Xi Jinping have agreed on a one-year deal for the supply of crucial rare earth materials.
The announcement came after the two leaders met in Busan, South Korea, on the sidelines of the 32nd APEC Economic Leaders’ Meeting -- their first in-person meeting in six years.
Trump said the agreement will be renewed annually and represents significant progress in the countries’ strained trade relationship.
“All the rare earths have been settled, and that’s for the world,” Trump told reporters aboard Air Force One after the meeting.
He added that he had also agreed to reduce fentanyl-related tariffs on China from 20 per cent to 10 per cent, describing the meeting with Xi as “a 12 out of 10.”
Trump said, “A lot of things we brought to finalisation,” and praised the Chinese President as “a tremendous leader of a very powerful country.”
He also revealed that he will visit China in April, while Xi is expected to travel to the US later, either to Florida, Palm Beach, or Washington, D.C.
Chinese President Xi Jinping, meanwhile, struck a conciliatory tone, saying that China’s growth complements Trump’s vision to 'Make America Great Again.'
Speaking during the meeting, Xi said China and the United States are capable of helping each other “succeed and prosper together.”
“China and the United States should be partners and friends. That is what history has taught us and what reality needs,” Xi said, adding that he is ready to continue working with Trump to strengthen bilateral relations and create a positive environment for the development of both nations.
The rare earth deal is seen as a breakthrough amid a prolonged trade standoff marked by tit-for-tat tariffs.
The two sides had earlier been working on a framework agreement that would allow China to delay stricter export controls on rare earth materials for a year, in exchange for the US dropping plans to impose an additional 100 per cent tariff on Chinese goods from November 1.
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