How did Donald Trump and Xi Jinping resolve diferences? Here’s what US President says

Speaking more about their understanding and the relationship they have shared for years, Trump said, “We’ve had a fantastic relationship. We’ve gotten along. When there were difficulties, we worked it out. I would call you, and you would call me. Whenever we had a problem, we worked it out very quickly, and we’re going to have a fantastic future together…”

Xi also acknowledged that he had always believed that the common interests between the two countries had outweighed their differences.

So, what are the issues that have plagued the relationship between the two countries in the past year?

Reciprocal tariffs: Beginning with Trump’s reciprocal “Liberation Day” tariffs on nearly all US trade partners in April 2025, average tariffs on China went from 34% to a high of 145% within a few days. China countered with 125% tariffs, and by May, both sides opened negotiations with top leaders meeting in Geneva. Tariffs affected the US-China trade deficit (the difference in imports and exports), which stood at $346 billion in 2016 and dropped significantly to $202 billion by 2025.

China heavily leveraged its dominant position in processing rare earths, which are essential for manufacturing technological goods, to demand concessions. In fact, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet in Seoul before Trump’s visit.

Taiwan flashpoint: Rising tensions across the Taiwan Strait do seem partly fuelled by the Trump administration’s mixed signals about its Taipei policy. Last December, the US announced an $11billion arms deal with Taiwan, triggering protests from the Chinese government. Trump, however, has since downplayed the US willingness to defend Taiwan. “He considers it to be a part of China,” Trump said of Xi, adding that “(it’s) up to him, what he’s going to be doing (on Taiwan).”

Iran war: With China being the largest buyer of Iranian oil, the conflict in the Middle East — triggered by the US-Israel joint attack on Iran — has increased pressure on Beijing’s economy and energy security. As disruptions in the Gulf have made commercial vessels vulnerable to attacks and delays, China has been urging for a complete cessation of hostilities and opening up of the Strait of Hormuz.