Busan, South Korea — October 30, 2025
China and the United States signaled a major easing of economic tensions on Thursday, after President Xi Jinping and U.S. President Donald Trump held talks on the sidelines of the APEC summit in Busan.
The meeting followed economic consultations in Kuala Lumpur, where negotiating teams reached what both sides described as a “basic consensus” on addressing key trade concerns.
President Xi said it is “normal” for the world’s two largest economies to have differences, but stressed that China-U.S. relations have remained broadly stable and should continue moving forward.
“China and the United States must ensure the giant ship of bilateral ties sails steadily through winds and waves,” Xi said, calling the two nations “co-captains” responsible for global stability.
President Trump called the talks “constructive” and suggested tariff reductions and expanded economic cooperation could follow, including in agriculture and critical supply-chain sectors.
Why It Matters
• Signals de-escalation in the world’s biggest trade relationship
• Reduces uncertainty for global markets and supply chains
• Opens space for dialogue on tech, energy and agriculture
• Important for developing economies, including Africa, which are impacted by U.S.–China tensions
African & Ethiopian Context
A more predictable U.S.–China relationship may support:
• Greater stability in commodity prices
• Improved investment climate for infrastructure and trade
• Opportunities to deepen ties with both economic partners
China and the United States are key economic players in Africa, and calmer relations may help developing economies focus on growth rather than geopolitical shockwaves.
