U.S. President Donald Trump’s week-long tour of Asia has evolved into a high-stakes global power contest, with critical issues such as rare earth minerals, tariffs, and military commitments taking center stage ahead of his pivotal meeting with Chinese President Xi Jinping in South Korea. This summit, scheduled for October 30 during the Asia-Pacific Economic Cooperation (APEC) forum, is widely regarded as a decisive moment that could shape U.S.-China relations for the remainder of Trump’s second term.
Trump began his tour by arriving in Kuala Lumpur, Malaysia, to attend the Association of Southeast Asian Nations (ASEAN) summit. This marks the first leg of a five-day itinerary that will also take him to Japan and South Korea. His main agenda is clear: to secure new trade agreements that open up opportunities for American companies, maintain tariff revenues vital for the U.S. Treasury, and ultimately ease the escalating tensions with China. As the world’s two largest economies continue to clash, the economic stakes are enormous, not just for the U.S. and China but for the entire global economy.
China, however, holds significant leverage in these negotiations. Trump has acknowledged that the stringent tariffs imposed on Chinese goods cannot be sustained indefinitely. The ongoing economic friction has already led to market volatility, with previous pauses in U.S.-China talks triggering declines in American stock markets. Success for Trump would mean finalizing a trade deal with South Korea, securing substantial industrial investments from Japan, and most critically, persuading Xi to resume purchases of U.S. agricultural products. Additionally, Trump aims to encourage China to relax restrictions on foreign companies, expand market access for American firms, and prevent any further escalation of the trade war. The entirety of the U.S. president’s tour is centered on these objectives.
On the other side, Xi Jinping is expected to approach the talks with a calculated and firm stance. China’s dominance in rare earth minerals — essential components for semiconductors, weapons systems, vehicles, and smartphones — provides Beijing with a significant strategic advantage. The United States recognizes this vulnerability and cannot overlook it in negotiations. Moreover, China has strategically withheld purchases of U.S. soybeans, a move designed to influence political sentiments in the American heartland. Learning from the previous U.S. administration’s approach, Xi appears prepared to withstand tariff-related economic losses, partly because Washington no longer represents the critical export market it once did for Beijing.
Domestically, Xi faces a delicate balancing act. He must manage rising economic challenges at home, including youth unemployment, a real estate crisis, mounting local government debt, and consumer caution. Analysts suggest that China might only offer meaningful concessions if Trump agrees to resume exports of advanced artificial intelligence chips to China or scales back U.S. military support for Taiwan. This contrast between Trump’s willingness to take immediate risks and Xi’s long-term strategic planning raises questions about how patient the U.S. president can afford to be.
During his visit to Malaysia, Trump also addressed regional issues. He attended a summit where Thailand and Cambodia agreed to withdraw troops from disputed border areas, signaling a move toward normalizing relations and reducing tensions in Southeast Asia. ASEAN member countries, many of which depend heavily on exports, are hopeful that Trump’s presence will help stabilize their economic ties with the United States. Although exports to the U.S. have doubled since Trump’s last visit in 2017, high tariffs continue to create economic uncertainty for these nations.
The ongoing civil war in Myanmar loomed as a dark cloud over the ASEAN meetings, though it remained outside Trump’s immediate focus. Asian industrial centers are awaiting relief from U.S. tariffs, with some countries having reached agreements while others remain entangled in prolonged negotiations. No formal deals have been finalized yet, but any concrete progress would be welcomed as a positive step. China remains central to these dynamics, as the upcoming Trump-Xi meeting could potentially yield breakthroughs on tariffs, exports, and broader trade issues.
The competition for dominance in artificial intelligence and advanced technology adds another complex layer to the negotiations. Even a slight easing of tensions between the U.S. and China would benefit countries caught in the middle, particularly Southeast Asian nations deeply integrated into electronics supply chains yet reliant on Chinese demand.
Japan and South Korea, both key U.S. allies, face their own unique challenges amid this evolving landscape. Both countries seek stable and lasting agreements on tariffs and investment to ensure economic security. Japanese automakers such as Toyota, Honda, and Nissan are navigating a volatile U.S