Trump says he expects ‘great deal’ with China at summit with Xi

Gyeongju, South Korea – United States President Donald Trump says he expects to seal a “great deal” with China at his high-stakes meeting with Chinese President Xi Jinping.

In a wide-ranging and rambling speech on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit on Wednesday, Trump said the expected trade deal would be good for both countries and “something very exciting for everybody”.

“That’s really a great result. That’s better than fighting and going through all sorts of problems,” Trump said in an address to a business luncheon on the sidelines of the APEC gathering in Gyeongju.

“No reason for it.”

Trump is scheduled to meet Xi on Thursday in the coastal city of Busan, about 85 kilometres south of Gyeongju, in their first face-to-face encounter since the US president launched his second trade war with China.

Trump, who is on the final leg of a six-day visit to Asia, last met Xi in 2019 on the sidelines of the Group of 20 summit in Osaka, Japan.

Trump, who arrived in South Korea after stops in Japan and Malaysia, did not provide details of the anticipated agreement.

But speaking on Air Force One earlier on Wednesday, Trump said he expected the agreement to solve “a lot of problems” and include lower tariffs on Chinese goods in exchange for Beijing taking steps to curb the production of fentanyl.

Trump has imposed a 20 percent tariff on Chinese goods over what he claims is Beijing’s failure to crack down on the flow of chemicals used in making the deadly opioid.

US officials have previously indicated that a deal is likely to include the deferral of China’s planned export controls on rare earth minerals and an additional 100 percent US tariff on Chinese goods, along with a commitment by Beijing to buy more US agricultural products.

China’s Ministry of Foreign Affairs on Wednesday confirmed that Xi would meet Trump, but did not specifically refer to the deal.

“At this meeting, the two leaders will have in-depth communication on strategic, long-term issues related to China-US relations and major issues of common concern,” spokesperson Guo Jiakun told a regular media briefing.

“We are willing to work with the US side to strive for positive outcomes at this meeting, providing new direction and momentum for the stable development of China-US relations.”

Trump also said on Wednesday that he had “pretty much finalised” a trade deal with South Korea.

Kim Yong-beom, an aide to South Korean President Lee Jae Myung, told reporters later that the US agreed to lower its tariff on vehicles and auto parts to 15 percent.

Kim said that a $350bn investment package pledged earlier by Seoul in exchange for lower tariffs would consist of $200bn in direct cash payments and $150bn allocated to shipbuilding “cooperation”.

South Korea and the US, which are close treaty allies, had struggled to finalise their trade agreement due to differences over the specifics of the investment pledge.

Earlier, Trump hailed the Korean-led expansion of the Hanwha Philly Shipyard in Philadelphia, Pennsylvania.

South Korean shipbuilder Hanwha Ocean said in August that it would spend $70m on expanding the shipyard, which it bought last year.

“I think it’s going to be one of the most successful yards anywhere in the world,” Trump said.