Trade thaw in sight? Donald Trump, Xi Jinping come face-to-face for first time since 2019; how it unfolded

US President Donald Trump and Chinese President Xi Jinping struck notably different tones during their much-anticipated meeting in Busan, South Korea, on Thursday. While the 47th POTUS signalled warmth and optimism the Chinese supremo projected caution pointing to "friction" between the world's two largest economies.“It’s a great honour to be with a friend of mine, really for a long time now,” Trump said as he sat across the table from Xi. “The very, very distinguished and respected President of China. We’ve already agreed to a lot of things, and we’ll agree to some more right now.”The meeting, which lasted only five minutes on livestream before the press was ushered out, marked the first in-person encounter between the two leaders since Trump returned to office.Both leaders face mounting domestic pressures: Trump amid high inflation, unsettled manufacturing sector and a government shutdown and Xi grappling with a property crisis and sluggish consumer demand.

Warm words meet wary tone

Xi welcomed Trump warmly, noting that they had spoken on the phone three times since his re-election and exchanged several letters. “President Trump, it is a great pleasure to meet you, and it feels very warm seeing you again because it’s been many years,” Xi said.

“Given our different national conditions, we do not always see eye to eye with each other, and it is normal for the two leading economies of the world to have frictions now and then.

”The Chinese leader said both countries should “stay the right course and ensure the steady sailing forward of the giant ship of China-US relations.” He added, “I always believe that China’s development goes hand in hand with your vision to Make America Great Again.

Our two countries are fully able to help each other succeed and prosper together.”Xi also referred to the importance of the two nations “jointly shouldering responsibility as major countries” at a time when the world faces “winds, waves, and challenges.” But his words underscored Beijing’s belief that cooperation would not erase differences — a contrast to Trump’s overtly upbeat tone.As reporters were ushered out of the room after brief remarks, Trump ignored a shouted question about his decision to resume US nuclear weapons testing, a move he announced minutes before the meeting.

“Thank you very much, everybody,” he said instead.

What's at stake

The talks came against the backdrop of years of economic rivalry — tariffs, export controls, and technological restrictions. Beijing recently tightened its grip on rare earth exports, affecting US manufacturers, while Trump threatened new levies of up to 100% on Chinese goods before later softening his stance.Ahead of the meeting, both sides had hinted at possible progress on several contentious issues, from fentanyl trafficking and rare earth exports to the fate of TikTok’s US operations. Trump’s Treasury Secretary, Scott Bessent, said Beijing had agreed to “substantial” agricultural purchases, a move seen as an olive branch after China’s earlier halt on US soybean imports.Beijing, meanwhile, sought relief from chip export curbs that have constrained its tech ambitions. Analysts said a narrow truce could emerge, potentially delaying new tariffs and reopening trade channels in key sectors.