The high-stakes meeting between U.S. President Donald Trump and Chinese President Xi Jinping on October 30, 2025, in Busan, South Korea, represented a critical juncture in the volatile relationship between the world's two largest economies. Occurring on the sidelines of an international summit, this face-to-face encounter, their first in six years, aimed to de-escalate mounting trade tensions and address broader geopolitical frictions that have significantly impacted global stability and economic prosperity ([CNN, 2025/10/29](https://www.cnn.com/2025/10/29/asia/us-china-trump-xi-meet-south-korea-intl-hnk)). The discussions, while yielding some immediate agreements, also underscored the enduring complexities and strategic competition that define the bilateral relationship.

### International and Bilateral Context Leading to the Meeting

The context for the Trump-Xi meeting was characterized by a prolonged period of intense economic rivalry and simmering geopolitical tensions. The global economy had been "roiled by a tit-for-tat of mounting tariffs, export controls and other penalties" affecting various sectors, from high-tech goods to international shipping ([CNN, 2025/10/29](https://www.cnn.com/2025/10/29/asia/us-china-trump-xi-meet-south-korea-intl-hnk)). Both Washington and Beijing had been trading accusations of economic coercion, with U.S. Treasury Secretary Scott Bessent asserting, "This is China versus the world" regarding rare earth export controls, and Chinese scholar Zhu Feng arguing that U.S. tariffs had "brought globalization to the verge of breakdown" ([NPR, 2025/10/29](https://www.npr.org/2025/10/29/nx-s1-5589729/trump-xi-deal-south-korea-apec)).

**Global Economic Landscape and Specific Trade Disputes:**
A primary driver for the meeting was the escalating trade war. The U.S. had imposed a 20% tariff on Chinese imports, citing China's insufficient efforts to restrict fentanyl precursor exports, leading to retaliatory tariffs from Beijing on U.S. soybeans ([NPR, 2025/10/29](https://www.npr.org/2025/10/29/nx-s1-5589729/trump-xi-deal-south-korea-apec)). More recently, the trade war reignited with Beijing's proposal to "dramatically expand its curbs on exports of rare earth minerals," critical for manufacturing everything from smartphones to fighter jets. In response, Trump had vowed "additional 100% tariffs on Chinese exports" and other measures, including potential curbs on U.S. software-powered exports to China ([The Guardian, 2025/10/30](https://www.theguardian.com/us-news/2025/oct/30/trump-and-xi-meet-in-south-korea-for-crunch-talks-on-trade), [CNBC, 2025/10/30](https://www.cnbc.com/2025/10/30/trump-s-rare-earth-deals-target-chinas-dominance-heres-why-change-wont-come-soon)). Beyond tariffs, the U.S. had also raised port fees on Chinese-owned or operated ships and proposed barring Chinese air carriers from flying through Russian airspace, measures seen by China as overwhelmingly pounding on its economy ([NPR, 2025/10/29](https://www.npr.org/2025/10/29/nx-s1-5589729/trump-xi-deal-south-korea-apec)).

**Geopolitical Undercurrents:**
Beyond trade, the meeting was set against a backdrop of broader geopolitical competition. China's growing military assertiveness in the East and South China Seas continued to rattle U.S. allies in the region, contributing to a "thorny and volatile great power rivalry" ([CNN, 2025/10/29](https://www.cnn.com/2025/10/29/asia/us-china-trump-xi-meet-south-korea-intl-hnk)). Issues like the Taiwan Strait remained a flashpoint, though not explicitly on the meeting agenda.

**Pre-Meeting Diplomatic Engagements and Trump's Asia Tour:**
The meeting was preceded by diplomatic efforts to lay the groundwork for a deal. U.S. and Chinese economic officials had met over the weekend in Malaysia to build a framework that included China resuming purchases of U.S. soybeans and delaying export restrictions on rare earths, while the U.S. would hold off on raising tariffs by 100% ([NPR, 2025/10/29](https://www.npr.org/2025/10/29/nx-s1-5589729/trump-xi-deal-south-korea-apec)).
President Trump's visit to South Korea was the final stop on a five-day tour of Asia. His itinerary included presiding over a peace deal signing between Cambodia and Thailand at the ASEAN summit in Malaysia, meeting newly-elected Prime Minister Sanae Takaichi in Japan to sign agreements on rare earths supply and a "new golden age" trade deal, and meeting South Korean leader Lee Jae Myung before speaking at the APEC business leaders summit in Gyeongju ([BBC, 2025/10/30](https://www.bbc.com/news/live/cd7ry3x0nvet)). This extensive regional engagement underscored the U.S.'s commitment