CRYPTO FLUXX

Donald Trump and *i Jinping’s meeting in Busan, South Korea has officially concluded — marking their first in-person encounter since 2019. The overall tone of the summit was notably positive, with both leaders making several significant decisions.

The discussions began with the fentanyl crisis. China has pledged to tighten its controls over chemical exports used in the production of fentanyl. In return, the United States has reduced tariffs on fentanyl-related Chinese goods from 20% to 10%. Trump stated, “Xi will work very hard to stop fentanyl.”

On the Ukraine issue, a rare moment of alignment emerged. Both leaders expressed a joint commitment to work toward ending the Russia-Ukraine war. Trump urged Xi to leverage Beijing’s influence over Moscow to facilitate a ceasefire and initiate peace talks.

Trade relations also saw a breakthrough. The U.S. announced a temporary reduction in overall import tariffs on Chinese goods—from 57% to 47% for one year, with a possible extension. In exchange, China reaffirmed its commitment to resume “large-scale” purchases of U.S. soybeans, a move viewed as a major win for American farmers.

Regarding rare earth minerals, both sides reached a one-year agreement. China assured that it would not restrict exports, ensuring a steady supply for U.S. technology, electric vehicle, and defense industries. Trump confidently declared, “It’s settled.”

In the tech sector, signs of easing tensions appeared. China agreed to engage in discussions over restrictions involving Nvidia and other advanced semiconductor firms, though the latest Blackwell chips remain off-limits. Additionally, the sale and algorithm transfer of TikTok’s U.S. operations are nearing finalization.

While this meeting did not produce a comprehensive “Phase Two” trade deal, it clearly signaled the beginning of de-escalation. Immediate risks such as 100% tariffs and rare earth export bans have been averted. Trump extended an invitation for Xi to visit the U.S., while he himself is scheduled to visit China in April 2026.

U.S. markets responded positively to the news — major stock indices rose by 1–2%, soybean and rare earth companies saw notable gains, and even the crypto market experienced a modest uptick.

However, skeptics remain cautious, pointing out that China has made similar promises on fentanyl in the past without meaningful follow-through. Real progress on Ukraine also remains to be seen.

Bottom line: This is a pragmatic reset — not a grand breakthrough. The true test will be in how effectively these commitments are implemented in the coming months.