Trump will meet China’s Xi for the first time in his second term as a trade deal remains elusive

US President Donald Trump will meet Chinese President Xi Jinping next week as part of his Asia tour, as the world’s two leading economies seek to ease tensions in the quest for a trade deal.

White House Press Secretary Carolyn Levitt told reporters on Thursday Trump will meet his Chinese counterpart on October 30 on the sidelines of the Asia-Pacific Economic Cooperation, or APEC, summit.

“I think we’re going to come out pretty good and everybody’s going to be very happy,” Trump said later Thursday Its panned meeting With Shi.

South Korea’s presidential security adviser Y Sung-lak confirmed Trump and Xi’s state visit during the APEC summit on Thursday, although China has not made an official statement about it.

This will be the first in-person meeting between the two heads of state since Trump returned to office in January. At least two phone calls were made to the leaders during this year In 2019 During Trump’s first term as president.

A high-stakes meeting looms as the fragile trade embargo between the economic superpowers expires on November 10 if they fail to agree on a second extension. Trump also set a November 1 deadline for additional 100% tariffs announced earlier this month.

A trade war has been threatened in recent weeks by a fresh wave of restrictive measures such as hefty port fees on each other’s ships, export controls on technology and rare earth minerals.

The two economic powers have also clashed Pending issues with rates, Agricultural procurementfentanyl flow, and Geopolitical flashpoints like Taiwan.

“This will be a high-risk, high-reward meeting of leaders,” said Han Shen Lin, China director of global consultancy firm The Asia Group. While avoiding “any big headline concessions”, he added, “Both sides will try to hit the ‘reset’ button on a relationship that has been muddled by the latest round of tit-for-tat sanctions.”

The two countries could agree to resume ongoing trade talks instead of a massive trade deal, Han said, adding that deep structural disputes remain unresolved and “may never happen.”

Trump told reporters aboard Air Force One on Sunday that rare earths, fentanyl, soybeans and Taiwan are from the US. Top points for discussion With China. A senior foreign affairs official from Taiwan said on Tuesday that Taipei was in close contact Will closely monitor the meeting with Washington and with Trump.

At a press conference on China’s economic development plan on Friday, Commerce Minister Wang Wentao emphasized that the US and China can find ways to work together instead of talking to each other.

China’s Ministry of Foreign Affairs and the Chinese Embassy in the US did not immediately respond to requests for confirmation on Xi’s visit to South Korea.

Chinese Commerce Ministry said on Thursday A delegation led by Chinese Vice President He Lifeng, the country’s top trade negotiator, will meet US Treasury Secretary Scott Besant in Malaysia this week to discuss trade and economic issues.

Beijing dramatically expanded it in early October Restrictions on export of rare earths minerals and related technologies, and Trump retaliated with threats Additional 100% rate On Chinese goods. Besant calls this move by China to weaken the global economy “Pull everyone else down with them.”

The Trump administration is also considering restricting large-scale exports Products made with American software to China, and According to reports Trump plans to launch a trade investigation into China’s failure to uphold the terms of a trade deal signed in his first term.

The New York Times reported Thursday that the investigation could be announced as soon as Friday. Clear the way For higher tariffs on Chinese goods.

Earlier this month, the US president had hinted at the possibility of canceling his meeting with Xi, who has expressed anger over Beijing’s expanded export controls on rare earth minerals. But Trump has softened his rhetoric in recent days and recalled his “excellent relationship” with Xi, saying he expected the talks to yield a “good deal” on trade.

The president said Wednesday that he had “Long” meeting with Xi scheduled During his upcoming trip to South Korea, where he is expected reach an agreement with Chinese Leaders on Soybean Purchases and Limits on Nuclear Weapons.

Faced with massive US tech sanctions in recent years, China has pledged to increase self-reliance in technology over the next five years, according to a new economic blueprint released by the ruling Communist Party on Thursday.

At a press conference on Friday, Chinese leaders pointed to complex external challenges, underscoring Beijing’s drive to reduce its dependence on the US while boosting its own technological ambitions.

While both sides retain significant leverage, Beijing “seems more willing to walk away from a deal that doesn’t meet its objectives,” said Gabriel Wildau, managing director of consulting firm Teneo, while Trump may want to avoid implementing a 100% tariff threat.

Despite the recent escalation, the upcoming meeting with Trump will be important to restore “a measure of calm to bilateral relations” and set the stage for a final negotiating push toward a trade deal in early 2026, Wildau added.

Trump will visit Tokyo on October 27 before heading to South Korea.

— CNBC’s Evelyn Cheng contributed to this report.