Busan Summit Brings Trade Truce Between US and China
The Busan Summit trade truce has brought a moment of calm to the ongoing US China trade tensions. Both leaders, Xi Jinping and Donald Trump, agreed to pause escalating tariffs and reopen dialogue on economic cooperation.
Despite global challenges, Xi expressed optimism about China’s strength and stability. “The Chinese economy is like a vast ocean,” he said. “It is big, resilient, and capable of weathering any storm.”
However, the impact of US tariffs remains visible. China’s exports still rely heavily on the American market, which totaled $688.28 billion in trade during 2024, according to UN data. The Busan agreement is expected to relieve some of the pressure on China’s manufacturing sector.
Easing Tensions, Not Ending Them
Xi emphasized that trade should unite both nations, not divide them. He urged that economic cooperation should be the “anchor and driving force” of bilateral relations.
For now, both countries appear to have stepped back from their most aggressive measures. Yet, analysts warn that the truce remains fragile. There is still uncertainty surrounding Trump’s long-term strategy toward China.
Observers question whether his approach aims to protect US industries, secure advanced technology, or contain China’s rise. The lack of clarity continues to keep investors cautious.
In addition, experts believe the truce may be politically motivated. With global markets watching closely, both sides seem eager to project stability while maintaining room for negotiation.
Xi attempted to ease geopolitical fears during his discussion with Trump. He reassured the US leader that China does not intend to challenge or replace any country. “The world,” Xi said, “is big enough for both China and the United States to succeed.”
The agreement, while temporary, signals a willingness to rebuild trust and cooperation. Therefore, the Busan Summit may mark the beginning of a more constructive phase in global trade relations.
