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New Delhi: US President Donald Trump will meet his Chinese counterpart Xi Jinping on October 30 on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit. On October 23, Trump spoke about his proposed trip and said: “I think we are going to come out very well and everyone’s going to be very happy.”
Ahead of the meeting, it was reported on Monday that the US and China have reached an agreement on several key contentious points as part of their trade deal. This has certainly paved the way for the two leaders to put their seal on the agreement. The US-China deal will go a long way in easing trade tensions that have thrown global markets into a tizzy.
After talks concluded in Malaysia on Sunday, a Chinese official reportedly told Bloomberg that both sides had reached a preliminary consensus on issues such as export controls, fentanyl, and shipping levies. US Treasury Secretary Scott Bessent pointed out that Trump’s threat of 100% tariffs on Chinese goods “is effectively off the table”.
This is a positive development after China’s new export restrictions and Trump’s counter-threat of additional tariffs had sparked concerns of a trade war taking a more ugly shape.
Trump is meeting Xi in-person for the first time after he returned to the White House. The upcoming meeting is being seen as a landmark moment as efforts are on bring about stability in economic ties between the two world giants. Bessent said the deal between Trump and Xi is likely to extend the existing tariff truce, settle the TikTok sale dispute, and guarantee the steady flow of rare earth magnets. Beijing is likely to make “substantial” purchases of US soybeans.
Trump and Xi's meeting assumes importance as the two leaders are expected to discuss ways to boost the economic cooperation, which would provide global markets the much-needed respite from volatility. The talks also provide hope to investors and policymakers to scale up their projects and lift their spirits. Experts contend that the meeting is expected to have a positive outcome and this could help boost confidence in global trade systems and take the US–China relationship towards some predictability.
The two leaders are also expected to discuss a global peace initiative, following Trump’s public remarks about seeking Xi’s help to stop Ukraine war. The meeting will also have impact on collaboration on supply chain security, climate change deals, and regional stability in the Indo-Pacific.
As the US and China ease tensions, it is expected to create opportunities for Indian exporters -- although indirectly. After the global supply chains gain some stability, Indian industries -- ranging from pharmaceuticals, textiles, and electronics -- could record a spike in demand.
Stability in US–China ties will bring some predictability in global markets, and this will help India as import costs will go down — especially for crude oil. As global economy stablises, it is expected to woo foreign investors back to markets like India and this will likely bring in more investment into the country.
The strained relations between Washington and Beijing have created lot of geopolitical uncertainty in Asia -- with India balancing its act between the two powers. The positive outcome of the Trump-Xi meeting will help reduce geopolitical tensions in the region. This could allow India to take forward its strategic and trade interests.
