US President Donald Trump and Chinese President Xi Jinping are set to hold a major summit in South Korea on Thursday. The meeting comes at a time when both countries are locked in a trade war that has unsettled the global economy.

Tensions between Washington and Beijing have risen again in recent weeks. The United States expanded export controls, while China tightened its restrictions on rare earth exports. This growing dispute led Trump to threaten a 100 per cent tariff on Chinese goods beginning November 1.

However, recent talks in Malaysia have raised hopes for progress. Officials from both sides said the two nations reached a basic framework for a trade deal, paving the way for the leaders to meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) CEO Summit in South Korea.

This will be Trump’s first in-person meeting with Xi since returning to the White House in January. The two last met in 2019 at the G20 Summit in Osaka, Japan. A major deadline also looms — November 10, when both sides hope to finalise a trade truce and reach a decision on TikTok’s sale in the US.

What the United States Wants

The United States has several key goals it hopes to achieve during the talks with China.

Fentanyl Trade

Trump first imposed tariffs on Chinese goods in February, accusing Beijing of failing to stop the flow of illegal fentanyl into America. China insists it has already taken “extensive measures” to address the issue. A breakthrough here could lead to reducing or even removing Trump’s 20 per cent fentanyl tariffs.

Rare Earths

China controls over 90 per cent of global rare earth processing, giving it strong leverage. Its new export limits have disrupted global supply chains. The US wants Beijing to relax these restrictions to prevent further shortages.

Soybean Imports

China has long been America’s biggest buyer of soybeans, but imports stopped completely in May. Trump will push Beijing to resume purchases, which are vital for US farmers.

Russia–Ukraine War

Trump hopes to gain Xi’s help in ending the war in Ukraine. He believes China, which maintains close ties with Moscow, can influence Russia. Trump has also warned that he could impose tariffs on China over its purchases of Russian oil — a measure he has already applied to India.

Economic Balance

Washington also wants to fix deeper trade issues — including its large trade deficit with China, unfair industrial subsidies, and barriers that limit US companies’ access to Chinese markets.

What China Hopes to Achieve

Beijing also has its own list of priorities for the summit.

US Tech Restrictions

China remains unhappy with America’s curbs on the export of AI chips and advanced technology. Beijing wants Washington to ease these controls, which it says are aimed at slowing its technological growth.

Taiwan Issue

China’s Communist Party continues to claim Taiwan as part of its territory, even though it has never ruled the island. During the talks, Beijing is expected to urge the US to avoid supporting Taiwan’s independence or interfering in the issue.

Preventing Containment

China views many of Washington’s policies as efforts to contain its rise. It will push for the US to relax investment and business restrictions on Chinese companies.

Other Key Topics on the Agenda

TikTok Deal

Both Trump and Xi have made progress toward a deal on TikTok. Under US law passed during the Biden administration, TikTok’s American operations must be sold to US buyers. The final terms of the sale could be decided at this week’s meeting.

Port Fees

Beijing has objected to new US fees imposed on Chinese-built ships docking at American ports. In response, China has added similar charges on US vessels. Both leaders are expected to discuss ways to settle this dispute.

Nuclear Arms

Trump has proposed including nuclear arms control in the talks as part of broader global security discussions.

Release of Jimmy Lai

Before leaving for Asia, Trump said he might ask Xi to release Jimmy Lai, the jailed Hong Kong media tycoon and founder of Apple Daily. Lai, a British citizen, has been detained since 2020 for supporting Hong Kong’s 2019 pro-democracy protests.

A Global Moment of High Stakes

The Trump–Xi summit is drawing global attention as both leaders prepare to negotiate on trade, security, and technology. The outcome could shape not only US–China relations but also the stability of the world economy.