The meeting between Donald Trump y Xi Jinping at the Busan airport (South Korea) has been beneficial for both parties. Trump has announced that they have reached a deal and that he will reduce tariffs on China to 47% in exchange for Beijing resuming purchases of American soybeans, keeping rare earth exports flowing, and cracking down on the illicit fentanyl trade.
The meeting between both leaders (they have not seen face to face since 2019) marks the end of Trump’s whirlwind tour of Asia, during which the US president has also reached trade agreements with South Korea, Japan and Southeast Asian countries.
“It has been an extraordinary meeting”Trump told reporters aboard Air Force One shortly after departing Busan, adding that tariffs on Chinese imports would be reduced from 57% to 47%.
The trade war between the two powers intensified at the beginning of the month after Beijing proposed drastically expanding restrictions on exports of rare earth minerals, essential for the high-tech industry. A sector that, coincidentally, China dominates.
Trump threatened retaliation, such as additional 100% tariffs on Chinese products, and possible restrictions on exports to China of products made with software United States. These measures would have had negative consequences worldwide.
The hope of the US Treasury secretary, Scott Bessantwas for Beijing to delay the implementation of controls on rare earths by one year and resume purchases of American soybeans, vital for its US farmers. And finally it is the agreement that both superpowers have reached.
Ryan Hass, a China specialist at the Brookings Institution, told the agency Reuters that, however, both countries will be reluctant to give up control over goods and technologies on which they mutually depend. “Those strategic points will remain as loaded weapons on the table,” he explains, “as leaders seek to reduce their dependence on each other in critical aspects.”
The White House has hinted that it hopes this summit will be the first of several between Trump and Xi. What’s more: plans trips to Washington and Beijing from each other sooner rather than later. Which does not mean that Trump is trying to find quick results.
The Taiwan file remains on the sidelines. A country with hardly any international recognition, with a solid democracy and with the military support of the United States. It is also, or above all is, the leading manufacturer of microprocessors in the world. Xi’s will is to reintegrate Taiwan into the People’s Republic. The Taiwanese do not share his desire.
The US Secretary of State and National Security Advisor, Marco Rubiostated on Wednesday that Taiwan should not worry about the talks between the US and China. Some analysts fear, however, that Trump may have offered dangerous concessions in this area. For example, saying that he will not come to its defense if Beijing opts for a blockade or invasion of the island.