Trump says he has deals with China after meeting Xi to try to solve trade tensions

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President Donald Trump said he has made deals with China after meeting Chinese leader Xi Jinping on Thursday, the final day of a trip to Asia that was an opportunity for the leaders of the world’s two largest economies to stabilize relations after months of turmoil over trade issues.

The president told reporters aboard Air Force One that the U.S. would lower tariffs implemented earlier this year as punishment on China for its selling of chemicals used to make fentanyl from 20% to 10%. That brings the total combined tariff rate on China down from 57% to 47%

“I guess on the scale from 0 to 10 … I would say the meeting was a 12,” Trump said aboard Air Force One as he returned to Washington after spending five days in three Asian countries. Their meeting lasted an hour and 40 minutes.

Trump’s aggressive use of tariffs since returning to the White House for a second term combined with China’s retaliatory limits on exports of rare earth elements had given the meeting newfound urgency.

There is a mutual recognition that neither side wants to risk blowing up the world economy in ways that could jeopardize their own country’s fortunes.

Here’s the latest:

China and the U.S. to pause tit-for-tat port fee measures for a year

China’s Commerce Ministry said on Thursday that the U.S. will pause its measures under its Section 301 investigation against China’s shipbuilding and maritime industries for one year.

It said China will pause its relevant countermeasures against the U.S. for a year in response after the U.S. suspensions take effect.

The U.S. imposed new port fees on Chinese-owned or -operated ships calling at American ports from Oct. 14 resulting from its Section 301 investigation, which it said found China’s practices in maritime and shipbuilding were “unreasonable” and a burden to American commerce.

Beijing, in response, slapped retaliatory port fees largely mirroring the U.S. fees on American vessels calling at Chinese ports that came into effect the same day.

Separately, China’s Commerce Ministry also said it will “properly” resolve TikTok related issues with the U.S.

China says it will suspend rare earth controls for one year

China has agreed to suspend its new export control restrictions on rare earth minerals for one year and study and refine them, the Commerce Ministry said.

In return, the U.S. will suspend for one year a rule that expanded its controls to all subsidiaries that are at least 50% owned by Chinese companies on an export control list.

The two moves in the U.S.-China trade war had alarmed companies globally.

The ministry statement didn’t mention rare earths by name, but said that China would suspend measures announced on Oct. 9, when the rare earth restrictions came out.

Chinese Commerce Ministry confirms tariff reduction

China confirmed Trump’s comment that the U.S. would slash the fentanyl-related tariff rate by 10 percentage points in a statement from the Commerce Ministry.

It also said that both sides would extend a temporary tariff rate pause on each other for a year.

The pause was initially announced in May after both sides threatened each other with sky high rates.

Xi calls for cooperation on AI and immigration

Xi, stressing that dialogue is better than confrontation, listed a range of issues where China and the U.S. could work together, including combating illegal immigration and telecom fraud, anti-money laundering efforts, artificial intelligence and infectious disease response.

He called for more dialogue and exchange on these potential areas of cooperation.

He also said the U.S. and China should have positive interactions on the global stage that demonstrate their responsibility as major powers to achieve positive results for their countries and the world.

He noted that China will host the APEC leaders meeting and the U.S., the Group of 20 summit, next year.

Xi calls on both sides to finalize consensus on trade

The first official Chinese comment on the meeting suggested any deal is not done.

Xi noted that negotiating teams from both countries had reached a consensus, a likely reference to talks held in Malaysia last weekend, according to a report on the meeting distributed by state media.

The Chinese leader said the teams should complete follow-up work as soon as possible to deliver tangible results that will provide “peace of mind” to China, the U.S. and the rest of the world.

The recent twists and turns in the relationship offer lessons for the U.S. and China, Xi said.

“Both sides should take the long-term perspective into account, focusing on the benefits of cooperation rather than falling into a vicious cycle of mutual retaliation,” he said, according to the report.

A look at past Trump-Xi meetings

Thursday’s meeting between the U.S. and Chinese leaders in Busan, South Korea, ran about an hour and 40 minutes, fairly similar in length to some of their meetings during Trump’s first term.

Their last meeting six years ago at the Group of 20 summit in Osaka, Japan, was under an hour and a half, as Trump went from his meeting with Xi straight to a separate sit-down with Turkish President Recep Tayyip Erdogan.

At a separate G20 summit — this time in 2018 in Buenos Aires, Argentina — Trump and Xi met for a dinner that ran more than two hours.

Their two meetups in 2017 were more elaborate. First, Trump invited Xi to Mar-a-Lago, his south Florida club and residence, for two days of discussions in April of that year.

Xi then returned the favor later that November when he welcomed Trump for a lavish state visit that included an arrival ceremony, a private tour of the Forbidden City as well as a dinner there, a military parade and a state banquet.

Trump says nuclear testing ‘will be announced’ but doesn’t offer any more details

The president, while speaking to reporters aboard Air Force One, seemed to be conflating the testing of missiles that deliver a nuclear warhead and the testing of nuclear weapons.

Trump said that other countries “seem to all be nuclear testing” but when it comes to the U.S., “We have more nuclear weapons than anybody. We don’t do testing.”

The U.S. tests its missiles, as does China and Russia. But the U.S. has not done an explosion test on its nuclear warheads since 1992 and no country outside of North Korea has done those tests on their weapons since the 1990s.

“I see them testing and I say, well, if they’re going to test, I guess we have to test,” Trump said.

Trump was asked where the tests would occur and he said, “It’ll be announced. We have test sites.”

Tariffs on Chinese exports are now 47%, Trump says

The new rate comes from Trump deciding not to move forward with his latest tariff threat, which would have created a 157% levy.

Trump decided to reduce the current rate from 57% to 47% because China agreed to help more on reducing the flow of fentanyl ingredients.

Trump says he’ll work with Xi on Ukraine war

“We’re both going to work together to see if we can get something done,” he said.

However, Trump suggested that “there’s not a lot more we can do.”

He said, “The sides are locked in, fighting, and sometimes you’ve got to let them fight, I guess.”

Trump said they did not discuss China’s purchase of Russian oil, which boosts Moscow’s economy during the conflict.

Trump says he’d return for a Kim Jong Un meeting

The U.S. president, speaking with reporters after departing South Korea, said he did not connect with the North Korean leader during his Asia trip.

He stressed that the two leaders maintained a good relationship and said he’d be willing to return for a Kim visit.

“I’d come back with respect to Kim Jong Un,” Trump said.

The two men met three times during Trump’s first term.

A thaw with Canada?

Trump and Canadian Prime Minister Mark Carney shared a dinner table last night in Gyeongju, where there were both visiting.

“We had a very nice conversation with him last night,” Trump said.

The president has been angry at Canada, even increasing tariffs, because of a critical television advertisement about his trade policy.

Trump says Taiwan wasn’t discussed

There was speculation ahead of the meeting that Xi would push Trump to reduce U.S. support for the self-governing island of Taiwan, which China views as part of its territory. But Trump said they didn’t talk about it.

“Taiwan never came up,” he said.

AP Photo/Mark Schiefelbein