U.S.-China Summit: Trade War Paused in Draw with Both Sides Compromising

Editorial

14:58 JST, October 31, 2025

The United States and China have agreed to pause their trade war. This must lead to a further easing of tensions to prevent negative repercussions from spreading not only in both nations but also across the world.

U.S. President Donald Trump and Chinese President Xi Jinping held talks in Busan, South Korea, lasting 100 minutes. This was their first in-person meeting since the start of Trump’s second term and the first in about six years.

A tug-of-war between the United States and China, marked by alternating tension and relaxation, resulted in what could be called a draw with compromise on both sides.

It appears the leaders agreed that China will postpone its strengthening of export restrictions on rare earths for one year, while the United States will hold off on imposing its countermeasure of 100% additional tariffs.

In addition, in exchange for China strengthening measures against the smuggling of the synthetic narcotic fentanyl, the United States will reduce its additional tariffs from 20% to 10%. This will lower the average tariff rate on Chinese imports from the 50% range to the 40% range.

Had the U.S.-China confrontation escalated further, it could have dealt a severe blow to the global economy. It is praiseworthy that both of them exercised restraint.

However, most of the underlying issues between Washington and Beijing remain unresolved.

For the United States, China is the largest source of its trade deficit, but no measures to correct this imbalance have been found. Problems with China such as unfair subsidies and the protection of intellectual property rights also show no significant improvement.

Rather, China’s strength was particularly evident in this series of confrontations. This is because U.S. dependence on China was exposed in such ways as U.S. automakers being forced to halt production due to China’s tightening of rare earth restrictions.

With U.S. midterm elections looming in autumn next year, Trump likely had no choice but to compromise on easily achievable results, such as the resumption of China’s imports of U.S. soybeans.

Xi also has vulnerabilities. The prolonged real estate slump has clearly slowed the economy. Xi may have judged it undesirable to prolong the trade war.

When will friction reignite? The unpredictable situation is unlikely to change.

Beyond economic matters, the long-term competition between the United States and China will likely persist.

China imports energy from Russia, which is engaging in aggression against Ukraine, and supports Russia’s ability to continue the war.

China is also making repeated military threats against Taiwan. Despite this, Trump did not mention the Taiwan issue during their talks.

According to Trump, he plans to visit China in April next year, with Xi to visit the United States afterward.

Trump must strongly urge the Xi administration to change its self-righteous approach. Furthermore, it is desirable for both countries to deepen communication at all levels and manage their confrontation.

(From The Yomiuri Shimbun, Oct. 31, 2025)