While the temporary peace has eased tensions for now, it doesn’t solve the deeper differences between the two powerful nations. Their economies are separating in many areas, and both are competing fiercely for global dominance, especially in fields like artificial intelligence.

US-China deal eases tensions, but deeper economic rifts remain

After meeting Trump in Busan, Xi Jinping said China and the US reached a consensus on trade and should avoid a “vicious cycle of revenge.” He called for steady ties and cooperation but did not comment on Trump’s claim of a rare earths deal or his planned visit to the US next year.

'We should not fall into vicious cycle of revenge': Xi Jinping after meeting Trump, no word on rare-earth deal, America visit

Trump and Xi concluded their Busan meeting, agreeing on most issues. They signed a one-year rare earths deal, with the US cutting China’s fentanyl-related tariffs by 10%. Xi is set to visit the US following Trump’s China trip in April next year.

Trump, Xi strike rare earths deal after US cuts China's fentanyl tariffs; Jinping to visit America in 2026

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US-China deal eases tensions, but deeper economic rifts remain

'Consensus reached': Xi after meeting Trump; no word on rare-earth deal

US-China strike rare earths deal, Trump says fentanyl tariffs slashed