Dear Focus Reader,

U.S. President Donald Trump met with Chinese President Xi Jinping on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, marking their first meeting since Trump's return to office. The two leaders announced a temporary easing of trade tensions, agreeing to a limited one-year truce focused on tariffs, agricultural purchases, and rare earth minerals.

Trump said the United States will lower tariffs on Chinese goods by 10 percentage points, while China will resume large-scale purchases of American soybeans and pause new export restrictions on rare earth minerals for one year. Both sides also agreed to suspend certain investigations and port fees tied to previous trade disputes.

Trump called it "an amazing meeting" and rated it "a 12 out of 10," while Xi said both sides had "reached a consensus on important economic and trade issues." Trump also said China had pledged to curb the export of fentanyl precursors to the U.S., a commitment tied to his decision to reduce related tariffs. The final outcome of the meeting resulted in both leaders agreeing to reciprocal visits to each others' countries in 2026.

The talks capped Trump's five-day Asia tour, which included stops in Japan and Southeast Asia, where he signed trade and investment agreements centered on critical minerals and regional security. Markets responded cautiously to the APEC outcome, with analysts describing the agreement as a tactical truce rather than a structural reset in U.S.-China relations. Learn more on international relations by catching up on our latest Focus content, including topics on China's 15th five-year plan, China's pursuit of technological self-reliance, and more.