Fresh from an “amazing” meeting with US President Donald Trump, Chinese President Xi Jinping delivered a speech at the APEC forum warning against economic fragmentation. He specifically cautioned member nations against “breaking supply chains.”
“We must adhere to the principle of joining hands rather than letting go, and extending rather than breaking supply chains,” Xi stated in his address in Gyeongju, South Korea. He also called for “genuine multilateralism.”
The backdrop for his speech was a new one-year deal struck with Trump. This pact includes the US slashing some tariffs and export controls. In return, China agreed to buy US soybeans and to pause any new curbs on rare earth minerals.
The agreement on rare earths is a significant truce, as Trump had previously threatened a 100% import tax on them. The deal also includes a one-year postponement of a US tech measure that would have blocked many Chinese firms from American technology.
The positive meeting has paved the way for future engagement. Trump announced a visit to China in April, and Xi confirmed he would visit the US at a later date. Xi urged teams to finalize the deal to provide “peace of mind” to the world.