Xi-Trump Summit Ignites Optimism in China Amid Hopes for a Tariff Truce and Renewed Bilateral ‘Honeymoon’

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Summary:

The recent Busan summit between Presidents Xi Jinping and Donald Trump has sparked cautious optimism in China, with hopes of reduced U.S. tariffs and improved investment flows...

Public Enthusiasm Grows Amid Tariff Reversal and Symbolic Gestures

The face-to-face meeting between President Xi Jinping and President Donald Trump on Thursday in South Korea has offered a moment of rare optimism for many in China, reigniting hopes for improved bilateral ties and a softening of economic tensions after a prolonged period of escalating tariffs and mistrust.

China’s social media platforms lit up with reactions, most notably on Weibo, where the hashtag “China-U.S. leaders’ Busan Summit” topped the trending charts. User responses although mostly terse and state-influenced ranged from hopeful slogans like “China-U.S. mutual success” to nostalgic calls for long-term friendship. On Xiaohongshu (RedNote), economist Song Qinghui remarked, “Look forward to the early arrival of the China-U.S. honeymoon period.”

A Trade Gesture, Not Yet a Resolution

President Trump’s unexpected decision to cut the 20% fentanyl-related tariff to 10% marked the most immediate tangible outcome of the summit. While this represented a departure from his previous threats to impose an additional 100% tariff, Trump offered little clarity on broader tariff reductions or the potential for easing restrictions on Chinese investment into the U.S. economy.

Nevertheless, many in China interpreted the move as a positive signal. Business leaders, like Alex Hongcai Xu of Beijing Honglve Consulting, stated that the meeting alone fosters “a positive atmosphere” that could lead to further de-escalation. Xu emphasized that reducing tariffs below 10% would significantly benefit bilateral capital flows, facilitate trade cooperation, and encourage reciprocal investments.

Economic Pragmatism: Investment Hope from a Slowing Economy

With China’s domestic economy showing signs of slowdown, entrepreneurs and trade professionals are increasingly looking outward. Luke Li, involved in energy-related trade in Beijing, expressed the prevailing sentiment: “As long as they meet, there will be progress.” He stressed that Chinese investors are most interested in whether U.S. tariffs on Chinese goods will be lowered, a move that would create more certainty for cross-border business.

The suspension of additional tariffs also opens the door for China to resume large-scale purchases of U.S. soybeans and Boeing aircraft key components of previous trade negotiations. Still, expectations are tempered by uncertainty over U.S. policies, particularly regarding Chinese companies’ ability to invest freely and securely in American markets.

State Media and Soft Power Messaging

Initial state-run media coverage of the summit was muted. On Thursday morning, Chinese outlets focused instead on the Shenzhou-21 space mission and APEC-related announcements. The Ministry of Foreign Affairs did not confirm the Trump-Xi meeting until Wednesday afternoon, reflecting Beijing’s cautious media choreography.

However, once the talks began, outlets like CCTV began broadcasting summit updates more frequently, and official readouts framed the discussion as aligned with both leaders’ national visions. Notably, Xi was quoted as saying that “China’s development and revitalization goes hand in hand with President Trump’s vision to ‘Make America Great Again.’”

This rhetoric, while diplomatic in tone, carries strategic implications. It signals that Beijing is willing to position its economic rise as complementary not adversarial to U.S. interests, so long as the relationship is managed with mutual respect.

The summit in Busan provided a symbolic yet potentially impactful reset in U.S.–China relations. For now, Chinese sentiment reflects cautious hope: a desire for lower tariffs, freer investment flows, and an easing of geopolitical hostilities. But public enthusiasm remains tempered by years of volatility and the awareness that this could be a honeymoon in name only unless backed by clear policy shifts and sustained diplomacy.

Ultimately, what matters most to Chinese businesses and investors isn’t just the gesture but the details to follow.

Source: CNBC

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