U.S. President Donald Trump and Chinese President Xi Jinping are set to meet next Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea — their first face-to-face encounter since Trump’s return to office earlier this year, and a moment that could reshape the tone of U.S.-China relations.

White House Press Secretary Karoline Leavitt confirmed Thursday that Trump will embark on a multi-nation trip through Asia beginning Friday night, with stops in Malaysia, Japan, and finally South Korea, where the high-stakes meeting will take place. “On Thursday morning local time, President Trump will participate in a bilateral meeting with President Xi of the People’s Republic of China, before departing to return home,” Leavitt said, according to Reuters.

A Meeting Under the Shadow of a Renewed Trade Clash

The long-anticipated sit-down comes amid renewed tensions between the world’s two largest economies. A fragile trade truce — set to expire on November 10 — hangs in the balance, while both sides have recently escalated tariff and export restrictions.

Earlier this month, Beijing sharply expanded its curbs on exports of rare-earth minerals — materials critical to global manufacturing in technology, defense, and clean energy. In response, Trump threatened to impose an additional 100% tariff on Chinese imports starting November 1 if the curbs are not reversed, even as he admitted that “high levies are not sustainable,” Bloomberg reported.

The tit-for-tat measures have unsettled markets and revived memories of the 2018–2019 trade war. Yet, Trump struck an optimistic tone Thursday. “I think we’re going to come out very well and everyone’s going to be very happy,” he told reporters, echoing comments made at a separate White House event (Bloomberg, Reuters). The president has repeatedly described his personal relationship with Xi as “great,” calling direct dialogue “the best way to resolve everything.”

The Agenda: From Tariffs to Fentanyl

While trade will dominate discussions, Trump signaled that he plans to open the meeting with a pointed question about fentanyl. “The first question I’m going to be asking him about is fentanyl,” he said, emphasizing U.S. frustration over China’s alleged role in the flow of precursor chemicals fueling America’s opioid crisis (Reuters).

Washington accuses Beijing of failing to stem exports tied to fentanyl production, while China counters that the U.S. is “politicizing” the issue and using it to “blackmail” Beijing. The White House has also cited the drug crisis as one justification for tightening tariffs on Chinese goods.

Xi’s Position and Beijing’s Response

China, meanwhile, has doubled down on its long-term strategy of technological self-reliance. Following a four-day Central Committee meeting this week, Beijing released a communiqué pledging to “greatly increase” national capacity for science and technology independence — a clear signal that it intends to weather U.S. export controls rather than concede to Washington’s pressure.

The meeting with Trump marks Xi’s most high-profile international engagement since a wave of Western restrictions on Chinese tech firms intensified earlier this year. It also comes as Beijing faces slowing growth, weakening foreign investment, and internal pressure to stabilize its currency and markets.

Markets Eye a Possible Truce — Again

Investors have tentatively welcomed signs that direct dialogue could ease tensions. Asian stock futures rose on Friday, with Japan, Hong Kong, and mainland China tracking Wall Street’s overnight gains. “Markets are hoping for at least a symbolic breakthrough,” said one Hong Kong-based strategist, noting that a short-term extension of the tariff pause “would already count as progress.”

Still, skepticism runs deep. Analysts at Citi and Nomura caution that even if the meeting produces warm optics, underlying issues — from semiconductor access to security flashpoints like Taiwan — remain intractable. “The best-case scenario is a détente, not a deal,” one senior Asia economist said privately.

What Comes Next

After meeting Xi, Trump is scheduled to conclude his Asia tour and return to Washington. Before that, he will meet Malaysia’s Prime Minister Anwar Ibrahim and Japan’s new Prime Minister Sanae Takaichi, as well as deliver a keynote address at the APEC CEO luncheon in Seoul.

Both leaders enter the APEC stage with considerable political stakes. Trump is seeking to project authority ahead of a contentious midterm cycle, while Xi aims to reinforce confidence in China’s global leadership despite economic headwinds. The personal chemistry between them — once touted as the foundation for “a good deal on everything” — will now be tested in a new era of competition.

Whether this week’s summit produces progress or merely postpones another confrontation remains uncertain. But for global markets, the mere prospect of Trump and Xi talking again — after years of tariff wars and tech decoupling — is reason enough to pay attention.