Rising Optimism Ahead of Thursday’s Summit Between Donald Trump and Xi

Tensions between the United States and China are mounting — but so are hopes for a breakthrough. U.S. President Donald Trump is set to meet Chinese President Xi this Thursday in Gyeongju, South Korea, during the Asia-Pacific Economic Cooperation (APEC) summit.

It will be the first in-person meeting between the two leaders during Trump’s second term.

Markets Bet on a Breakthrough: 93% Chance the Summit Happens According to data from prediction platform Kalshi, there is a 93% probability that the summit will indeed take place this week, with more than $6 million wagered on the event. Traders and policymakers are watching closely, as the outcome could determine the fate of tariffs, tech imports, and overall market stability. The meeting comes just days after U.S. Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng in Malaysia. Bessent told NBC’s Meet the Press that both sides had reached a “very substantial framework” that could halt Trump’s planned tariff hike and open the door for deeper negotiations. “I believe we’ve reached a substantial framework that will prevent the tariff increase and allow us to discuss that and many other issues with China,” Bessent said. Trump, speaking aboard Air Force One en route to Asia, echoed that sentiment: “They’ll have to make concessions — and I guess we will too. I wouldn’t like to see the tariffs go up.”

Key Topics: Tariffs, Rare Earths, Oil, Chips, and Taiwan The summit in Gyeongju will begin Thursday morning local time (Wednesday night in Washington) and follows private talks in Malaysia, which Chinese state media described as reaching a “basic consensus on arrangements.” The main topics on the table include:

🔹 Tariffs and trade – Trump’s proposed 100% tariff on Chinese imports is still scheduled to take effect on November 1, potentially pushing total duties above 150% on certain goods. Bessent now expects that hike to be suspended thanks to improved dialogue.

🔹 Rare earths – Washington is increasingly concerned about China’s dominance in rare earth minerals, vital for weapons, batteries, and semiconductors.

🔹 Russian oil – The U.S. has criticized Beijing for continuing to buy Russian crude despite global sanctions.

🔹 Semiconductor restrictions – The Biden-era chip export bans remain a sticking point; Washington wants China to stop bypassing them.

🔹 Fentanyl and soybeans – Both sides are expected to discuss illicit fentanyl trafficking and China’s commitment to purchase more U.S. soybeans. And then there’s Taiwan — the most delicate issue of all.

U.S. officials said Trump does not plan to raise the topic unless China does first. But before leaving Washington, he cautioned: “Any attempt by China to take control of Taiwan would be very dangerous for them. I don’t want to talk about it now — I don’t want to complicate the meeting.”

A Temporary Truce, Not Lasting Peace Political analyst Terry Haines from Pangaea Policy said the “nice noises” coming from both sides might lift markets in the short term, but the long-term outlook remains fragile. “They may have agreed to keep the truce alive for a few more months, but there’s no sign of lasting progress,” Haines said. He warned that the core issues — tech bans, resource dependencies, and geopolitical flashpoints — are still unresolved. Chinese state media echoed a familiar line: “The two countries gain from cooperation and lose from confrontation.”

Yet, on the ground, mutual trust remains fragile. Trump’s trip to Asia, which included a stop in Malaysia and a bilateral meeting with Malaysian Prime Minister Anwar Ibrahim, is part of a broader White House strategy to strengthen regional ties while maintaining pressure on Beijing.

All Eyes on Gyeongju Thursday’s Trump–Xi summit could determine whether the world sees a step toward trade stabilization or a return to rising tensions.

Markets are already reacting with optimism — but only time will tell whether this meeting delivers real progress or just more talk.

#TRUMP , #Tariffs , #GlobalMarkets , #worldnews , #china

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“