Speaking from the White House on Monday, October 20, 2025, former President Donald Trump declared that the United States is held in ‘great respect’ by Beijing. He expressed strong conviction that an upcoming meeting with Chinese President Xi Jinping would culminate in a ‘fantastic deal’ between the two nations.
Trump’s optimistic comments surface in the wake of renewed tensions, particularly after China’s move to expand export controls on crucial rare earth minerals — essential components in everything from smartphones to fighter jets and electric vehicles. His statement was made while hosting Australian Prime Minister Anthony Albanese, celebrating a new agreement designed to strengthen U.S.-Australian collaboration, potentially challenging China’s dominant position in the processing of these vital resources.
“I am confident we will ultimately forge a fantastic deal with China,” Trump stated, emphasizing his belief that the agreement would be a “great trade deal” — beneficial not only for both the U.S. and China but for the entire global community.
Addressing concerns about China’s perceived leverage, Trump openly acknowledged Beijing’s ‘threat’ regarding rare earth resources. In response, he recounted, ‘I threatened them with tariffs.’ Despite the tit-for-tat, he maintained that his positive relationship with President Xi would ensure a ‘very fair deal’ is reached.
The global community anxiously awaits this prospective meeting between Trump and Xi, as a failure to reach an accord risks further destabilizing both the delicate relationship between the world’s two largest economies and the broader global financial landscape.
Trump confirmed his intention to meet with President Xi later this month during the Asia Pacific Economic Cooperation (APEC) summit, a gathering of 21 economies. While Beijing has yet to publicly confirm Xi’s attendance in South Korea, such announcements often occur closer to the event.
In a direct response to China’s expanded regulations on rare earth products, the President previously threatened to levy a staggering 100% tariff. On Monday, he claimed these threats had already yielded positive results.
“Now, they are treating us with considerable respect,” Trump declared. “We’ll observe the developments. I explicitly stated that if a deal isn’t materialized, I will implement an additional 100% tariff starting November 1. I remain optimistic we will reach an agreement.”
Since reassuming office, Trump has already imposed an additional 30% in tariffs across the board on Chinese imports. He estimates the cumulative tariff rate on Chinese goods now stands between 55% and 57%, claiming the U.S. has collected ‘hundreds of billions of dollars’ in tariff revenue.
Beijing, however, has signaled its readiness for a tough negotiation.
Last week, Chinese Foreign Ministry spokesperson Lin Jian countered Trump’s tariff threats, stating firmly, ‘Threatening high tariffs is not the correct approach to engage with China.’
During his meeting with Prime Minister Albanese, Trump highlighted other potential leverage points against China, asserting, ‘They cannot obtain parts for their aircraft. We are the ones who build their airplanes.’
Despite these strong positions, Trump reiterated his preference for a deal, adding, “I wish to maintain a positive relationship with China, and I highly value my connection with President Xi.”
In a significant development, Li Chenggang, who co-led the last four rounds of trade discussions with the U.S., has been removed from his position as China’s top trade negotiator. Beijing confirmed his dismissal from the role of China’s permanent representative to the World Trade Organization in a terse, routine announcement on Monday, offering no explanation for the change.
His successor is Li Yongjie, currently the deputy international trade representative, known for his recent engagement in trade negotiations with Ecuador.
This personnel change aligns with recent public criticism from U.S. Treasury Secretary Scott Bessent, who, in a rare display of public displeasure last week, stated that Li Chenggang arrived in Washington on August 28th with “very incendiary language,” accusing him of having “gone rogue” and being “very disrespectful.”
Bessent elaborated, recounting that Li appeared ‘uninvited in Washington’ and asserted that ‘China will cause global chaos if the port shipping fees go through,’ referencing U.S. proposals for port charges on Chinese-affiliated ships.
Toward the end of last week, Chinese Vice Premier He Lifeng participated in a video conference with Secretary Bessent and U.S. Trade Representative Jamieson Greer. According to China’s official Xinhua news agency, both sides described the discussion as a ‘candid, in-depth, and constructive exchange,’ agreeing to schedule a new round of trade talks without delay.
Secretary Bessent had previously indicated that he and his Chinese counterpart were expected to meet shortly in Malaysia to lay the groundwork for a leaders’ summit.