Donald Trump has met with Chinese President Xi Jinping for the first time in six years, describing their meeting as a “12 out of 10.”

Both leaders agreed on measures to ease trade tensions and calm global markets, marking a de-escalation in Trump’s ongoing trade war with China.

Major concessions came from both sides. China will delay for one year new restrictions on exports of rare earths, metals critical to electronics, clean energy, and defence manufacturing. Trump pledged to cut tariffs on Chinese goods from 57% to roughly 47% and scrap a threatened 100% tariff that was due to take effect on 1 November.

While the meeting stopped short of a formal trade agreement, it signals a rare easing of the Trump administration’s combative trade posture. The White House has been pressing countries to wrap up trade negotiations that normally take years in a matter of months.

With China, the stakes are especially high: China controls roughly 70% of rare earth mining and around 90% of processing and magnet production. That the two superpowers have found even temporary alignment marks a successful moment of diplomacy that should not be underestimated.

The tone of the talks was notably constructive. Xi described the outcome as a: “reassuring pill” for both economies, while Trump claimed China had agreed to make “massive” new purchases of American soybeans and other agricultural goods, promising American farmers “will be very happy.” Both leaders also said they had discussed co-operation on Ukraine, though neither provided details.

Breathing room

For now, the truce offers much-needed breathing room after months of tense, tit-for-tat escalation. Just three weeks ago, in anticipation of this meeting, China sharply widened its export controls on rare earth minerals.

But the structural rifts between the two powers remain deep. China continues to pursue technological self-reliance and dominance in advanced manufacturing, while the United States (US) remains wary of overreliance on Chinese supply chains.

The US has sought to diversify its critical mineral supply chains through domestic investments and international partnerships. However, the US is entering a race that China is close to winning. Developing a competitive advantage will take years.

The US, however, holds two powerful cards of its own: control over advanced semiconductor technology critical to China’s ambitions and the purchasing power of its vast consumer market.

Trade negotiations, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, have struggled to produce lasting results, and the two sides have repeatedly traded accusations this year of backtracking on earlier commitments.

Beyond trade, both powers remain engaged in a broader geopolitical contest. Military tensions persist in the South China Sea and around Taiwan, which was not discussed during the meeting.

The agreement gives the US a one-year window before China’s new export restrictions on rare earths take effect. For now, the Trump-Xi truce stands as an encouraging victory for diplomacy.