China Confirms Xi-Trump Meeting In South Korea; Markets Hope For Trade Deal Breakthrough

China has officially confirmed that President Xi Jinping will meet U.S. President Donald Trump in South Korea on Thursday, setting the stage for a highly anticipated encounter that global investors hope will ease months of China-US trade tensions. The meeting, expected to take place in the port city of Busan, comes amid cautious optimism that the leaders of the world’s two largest economies could strike a long-awaited trade agreement after tariff wars and geopolitical strain.

A Chinese Foreign Ministry spokesperson said the two leaders would engage in “in-depth communications on strategic and long-term issues”, while avoiding any direct reference to a trade deal.

“We are willing to make joint efforts with the United States to promote the positive results of this meeting and provide new guidance and impetus for the stable development of China-US relations,” ministry official Guo Jiakun said on Wednesday.

Earlier in the day, Trump told reporters aboard Air Force One, en route to South Korea, that he and Xi were going to achieve “a good deal” for both countries.

Expectations of a Xi-Trump meeting have already helped stabilise global markets in recent weeks, following renewed tensions that raised fears the talks might collapse. The trade war, which began in 2018, has disrupted supply chains and hit manufacturing sectors worldwide.

Washington has blamed Beijing for escalating tensions through new export controls on rare earth minerals, while China maintains that the U.S. restrictions on Chinese investments and technology transfers fuelled the crisis.

Xi will be in South Korea from Thursday to Saturday to attend the Asia-Pacific Economic Cooperation (APEC) meeting and for a state visit. Trump, however, will not participate in the regional summit.

The two nations remain at odds over issues ranging from fentanyl trafficking and semiconductor exports to rare earth controls and soybean trade, leaving Thursday’s talks crucial for shaping the next phase of China-US economic relations.