In a notable development in international trade relations, US President Donald Trump and Chinese President Xi Jinping reached a preliminary agreement on Thursday for a one-year trade truce during their first direct meeting since 2019. The discussions took place in Busan, South Korea, and were marked by mutual concessions aimed at alleviating ongoing tensions between the two economic giants.
As part of the agreement, Trump and Xi have agreed to postpone recent expansive export controls on critical materials such as rare earths and semiconductors. Trump announced a significant reduction in tariffs, cutting the levy on fentanyl-related products imported from China by 50%. Additionally, Xi reportedly authorized China to resume purchases of “massive amounts” of American agricultural products, including soybeans and sorghum, a move that is expected to bolster US farmers amid strained trade relations.
Following the meeting, Trump expressed optimism about the outcome, providing a highly favorable assessment of the discussions. He rated the meeting as a 12 on a scale of 10, reinforcing his commitment to further dialogue by indicating an upcoming visit to China in April, alongside a reciprocal visit from Xi to the US.
Xi’s remarks were reported by the Communist Party’s People’s Daily, where he emphasized the importance of both sides refining the agreement’s details and working towards tangible outcomes, acknowledging that occasional frictions are natural between leading global economies.
Experts are analyzing the implications of this meeting. Dennis Wilder, a former CIA China analyst, suggested that this could lead to a more comprehensive trade deal, although both countries reserve the right to reintroduce punitive measures if progress stalls. Conversely, some analysts assert that Xi holds the upper hand, claiming that the negotiations reflect a greater willingness from Trump to compromise.
In other notable economic news, the Bank of Japan has opted to maintain its current interest rates, a decision that has led to significant depreciation of the yen against the US dollar. Bank Governor Kazuo Ueda stated he does not possess preconceived notions regarding the timing or necessity of a future rate increase, prompting analysts to warn of additional downward pressure on the yen in response to his cautious stance.
Meanwhile, tech giants Google, Meta, and Microsoft have collectively invested $80 billion into AI infrastructure, sparking mixed reactions from investors regarding the long-term profitability of such ventures. Meta is reportedly looking to raise $25 billion through a bond sale to support escalating costs associated with artificial intelligence development.
In the automotive industry, BYD has reported a 33% decline in profits during the third quarter as it focuses on expanding its presence in international markets. As the world’s largest producer of electric vehicles, the company faces significant challenges but remains committed to technological innovation to counter a slowdown in growth.
In the political landscape of Europe, liberal leader Rob Jetten of the Netherlands appears poised to become the next prime minister. His D66 party surpassed expectations in recent parliamentary elections, indicating a potential shift toward political stability and economic renewal, mirroring themes from former US President Barack Obama’s campaign.
Protests have erupted across Tanzania following an election described by many as a “sham,” characterized by violence and the disappearance of opposition figures. As unrest continues, authorities have imposed internet restrictions and curfews in an effort to maintain order.
In Iran, President Masoud Pezeshkian has proposed relocating the capital from Tehran due to severe water shortages impacting the city. However, experts have raised significant doubts about the feasibility of such a large-scale relocation project amidst the country’s existing challenges.
Lastly, a unique inquiry into Tokyo’s haunted spots in light of the approaching Halloween has revealed a fascinating exploration of the city’s ghostly undercurrents, drawing attention to a range of eerie locales from haunted malls to unsettling tunnels.
