Former U.S. Treasury Secretary Larry Summers observed that the most encouraging aspect of President Donald Trump’s first meeting in six years with Chinese President Xi Jinping was, quite simply, that it concluded without disorder or diplomatic breakdown. During a Friday interview with Bloomberg, Summers reflected on the high-profile encounter that had taken place a day earlier in South Korea — a reunion of two leaders whose nations currently define the dynamics of global economic power and geopolitical competition.
Summers emphasized that the Busan meeting, though modest in its overt achievements, yielded tangible agreements that signaled at least a temporary easing of friction between Washington and Beijing. The two sides reached understandings on critical matters such as the suspension of certain trade tariffs, enhanced agricultural cooperation, and new commitments regarding rare earth minerals — resources vital to modern technology industries. Moreover, they pledged to collaborate on combating the illicit trade of fentanyl, a synthetic opioid that has contributed to the ongoing public health crisis in the United States.
Reflecting on the broader meaning of the summit, Summers told Bloomberg that the true significance of the meeting lay not in the announcements or photo opportunities, but rather in what was deliberately avoided. “The most important outcome,” he remarked, “is what did not transpire.” By this, Summers referred to the absence of the volatility that could have easily escalated tensions into a full-blown diplomatic confrontation or even a destabilizing economic conflict. He underscored that the meeting had been conducted in a calm, measured fashion, steering clear of rhetoric or gestures that might have endangered an already fragile equilibrium between the two superpowers.
“This discussion,” Summers elaborated, “was managed in a way that averted outcomes which, had they materialized, could have been deeply unfortunate and profoundly destabilizing for global markets and international security.” His tone suggested a recognition that, in complex diplomacy, avoiding disaster can itself be counted as a success. Summers added that the unexpectedly composed atmosphere and the lack of mutual provocation were, in his view, genuinely positive developments.
However, not all the key points of contention between the United States and China were addressed. Summers noted that major technological issues — including the intensifying rivalry in artificial intelligence and advanced computing — were left off the agenda. Yet, he cautioned that this omission did not signal their irrelevance. Comparing U.S.–China relations to a lengthy narrative still unfolding, he observed, “This is a book with many chapters, and we are still at the beginning.” The remark conveyed a sense of cautious realism: the relationship remains complex, evolving, and far from resolution.
The Trump–Xi meeting marked the closing stop of President Trump’s multi-nation tour of Asia, culminating in Busan. The encounter appeared to cool down months of diplomatic chill and uncertainty, offering markets a rare moment of reassurance that tensions might be subsiding, at least temporarily. Financial indicators remained largely stable in its aftermath, underscoring that global investors welcomed the appearance of renewed dialogue rather than confrontation.
Among the agreements reached, President Trump announced a significant reduction in tariffs — cutting in half the 20% duties imposed on certain Chinese goods associated with fentanyl production. This concession was reciprocated by Xi Jinping’s pledge to enforce stricter controls on the manufacturing and export of the potent drug, which has ravaged communities across the United States. The mutual exchange, though limited in scope, suggested a shared interest in symbolic goodwill gestures that might pave the way toward more substantive progress.
Furthermore, Trump revealed that China had agreed to resume purchases of American agricultural products, including soybeans, sorghum, and other crops that are cornerstones of U.S. farming exports. China also committed to providing stable exports of rare earth minerals to the United States — materials essential for producing high-tech equipment, electric vehicles, and defense technologies. These developments, though not revolutionary, represented incremental steps toward restoring commercial trust between the world’s two largest economies.
According to a fact sheet released by the White House on Saturday, the United States would maintain its pause on so-called “reciprocal” tariffs against China for an additional year, extending the suspension until November 2026. This decision demonstrated a cautious desire to keep the door open for continued negotiation while avoiding renewed escalation.
Appearing later on CBS’s “60 Minutes,” Trump himself struck a notably optimistic tone when asked about his meeting with Xi and the state of U.S.–China relations. “I believe we get along very well,” he said, suggesting that personal rapport between leaders could still play a role in managing global frictions. He then added, “I think we can be bigger, better, and stronger by working with them, as opposed to simply trying to knock them out.” His commentary reflected a pragmatic view that cooperation, however uneasy, might yield greater advantage than perpetual antagonism.
Representatives for President Trump did not respond to Business Insider’s request for comment on Summers’s assessment. Nevertheless, the consensus reflected in both Summers’s remarks and the broader market reaction was clear: the Busan meeting, while short on dramatic policy breakthroughs, succeeded in its most essential task — preserving a fragile stability at a moment when renewed chaos was a very real possibility.
Sourse: https://www.businessinsider.com/larry-summers-trump-xi-meeting-avoided-confrontation-conflict-2025-11
