In a closely watched diplomatic encounter, Chinese President Xi Jinping and US President Donald Trump met face-to-face in Busan, South Korea, on Thursday, marking their first in-person meeting since Trump began his second term in office.
The summit, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum, comes amid persistent tensions over trade, technology, and regional security. Yet both leaders struck a conciliatory tone, signalling a shared desire to stabilise relations between the world’s two largest economies.
President Xi opened the talks by noting that the two leaders had maintained close contact since Trump’s re-election, including three phone calls and several letters. “Under our joint guidance, China-US relations have remained stable on the whole,” Xi said.
Trump, in turn, described Xi as “very, very distinguished and respected,” adding, “It is my honour to be with a friend of mine really for a long time.”
The meeting follows a recent round of trade consultations in Kuala Lumpur, where negotiators reportedly reached a basic consensus on key economic concerns. Xi acknowledged the progress, saying it laid the groundwork for Thursday’s dialogue.
While acknowledging the inevitability of friction between two global powers, Xi stressed the importance of cooperation. “Our two countries are fully able to help each other succeed and prosper together,” he said. “China and the US should be partners and friends. That is what history has taught us and what reality needs.”
Trump echoed the sentiment, suggesting that the two sides had already agreed on several issues and were poised to reach further consensus. “I think we are going to have a fantastic relationship for a long period of time,” he said.
The leaders also touched on global security challenges, with Xi praising Trump’s enthusiasm for resolving regional conflicts. “China and the US can jointly shoulder our responsibility as major countries,” Xi said, “and work together to accomplish more great and concrete things for the good of our two countries and the whole world.”
Financial markets responded with cautious optimism. The Shanghai Composite Index briefly rose to its highest level in a decade before retreating, while Hong Kong’s Hang Seng Index gained 0.6% after reopening from a holiday. US futures edged higher, reflecting investor relief at the absence of new escalations.
However, analysts described the reaction as muted. “This summit feels more like a tactical pause than a strategic breakthrough,” said one senior economist. “Markets are waiting for concrete outcomes, not just warm words.”
The Kuala Lumpur trade talks, which preceded the summit, reportedly addressed key issues including tariffs and rare earth exports. While the progress was welcomed, economists warned that structural decoupling between the two economies remains a long-term trend.
As the two leaders prepare for future engagements—Trump is expected to visit China in April—observers will be watching closely to see whether Thursday’s cordial exchange translates into lasting policy shifts.
