Trump, Xi Expected Trade Focus Ahead of Key Summit

U.S. President Donald Trump is focusing his upcoming meeting with Chinese President Xi Jinping primarily on improving the U.S.-China trade relationship, amid recent tensions over trade policies and rare-earth export controls imposed by China. Trump has defended his administration's tariff strategy, asserting that tariffs have strengthened the U.S. economy and stock market, while also using steep tariffs as a negotiation tactic to pressure Beijing. The U.S. and China are engaging in trade talks in Malaysia ahead of the Trump-Xi summit, with officials aiming to ease tensions and salvage fragile relations despite recent escalations including China's rare-earth restrictions and the U.S.'s threats of additional tariffs. The talks and policies around rare earth minerals, critical for technology and manufacturing, are a significant point of contention. Treasury Secretary Scott Bessent expressed cautious optimism about the trade talks but indicated that further measures could follow if China does not ease its rare-earth export controls. Analysts and commentators have discussed the sustainability of Trump's high tariff rates and the potential global economic impact of a new U.S.–China trade deal.