Trump vows to reach a ‘fantastic deal’ with China after future meeting with Xi

President Donald Trump speaks to reporters aboard Air Force One, Sunday, Oct. 19, 2025, en route to Joint Base Andrews, Md., as he returns from a trip to Florida. (AP Photo/Mark Schiefelbein)

WASHINGTON — U.S. President Donald Trump said Monday that the U.S. commands “great respect” from Beijing and that he will reach a “fantastic deal” with Chinese President Xi Jinping when the two leaders meet soon.

Trump’s remarks come after Beijing infuriated him by expanding export controls on rare earth products that are used in smartphones, fighter jets, electric vehicles and more. Trump spoke as he hosted Australian Prime Minister Anthony Albanese at the White House, celebrating an agreement with the U.S. ally as a potential counterpoint to China’s near-monopoly in processing those critical minerals.

“I think we’re going to end up having a fantastic deal with China,” Trump said. ”It’s going to be a great trade deal. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world.”

When asked about China’s leverage, Trump said Beijing “threatened us with rare earths, and I threatened them with tariffs.” But he insisted his good relationship with Xi means they would work out ”a very fair deal."

All eyes are on a potential meeting between Trump and Xi because any failure to reach some agreement raises the risk of destabilizing not only relations between the two superpowers but also the global economy.

Trump affirmed that he would meet with Xi this month on the sidelines of the Asia Pacific Economic Cooperation summit, a grouping of 21 economies. Beijing has not announced plans for Xi to make the trip to South Korea, but it’s not unusual for such details to emerge closer to the travel date.

Trump touts tariffs as a powerful tool with China

The president has threatened to impose a new 100 per cent tariff on China in response to Beijing’s expanded rules on rare earth products. And he said Monday that it has already had results.

“Now, they’re treating us with great respect,” Trump said. “Now, we’ll see what happens. I said, if we don’t make a deal, I’m putting on an additional 100 per cent on November 1. I think we’ll make a deal.”

Since returning to the White House, Trump has levied additional 30 per cent across-the-board tariffs on China. Trump said the total rate on Chinese goods is about 55 per cent to 57 per cent and the country has paid the U.S. “hundreds of billions of dollars worth of money for tariffs.”

Beijing, however, has indicated it would play hardball.

“Threatening high tariffs is not the right way to deal with China,” Lin Jian, a spokesperson for the Chinese foreign ministry, said last week in response to Trump’s new tariffs threat.

At the meeting with Albanese, Trump said he has other options to use against China: “They can’t get parts for their airplanes. We build their airplanes.”

Still, he said he prefers reaching a deal. “I want to be good to China. I love my relationship with President Xi,” Trump said.

Beijing removes a top trade negotiator

Meanwhile, Li Chenggang has been ousted as China’s top trade negotiator after co-leading the last four rounds of talks with the U.S. In a routine, bullet-style announcement of removals and appointments, Beijing said Monday that Li was removed from his post as China’s permanent representative to the World Trade Organization. No reason was given.

He was replaced by Li Yongjie, deputy international trade representative, who recently held trade talks with Ecuador.

The announcement coincided with Treasury Secretary Scott Bessent’s recent criticisms of Li Chenggang. At a press conference last week, Bessent made a rare public airing of displeasure, saying Li “showed up here with very incendiary language on August 28,” has “gone rogue” and was “very disrespectful.”

“He showed up uninvited in Washington and said, quote, China will cause global chaos if the port shipping fees go through,” Bessent said, referring to the U.S. plan to charge port fees on China-linked vessels.

Late last week, Chinese Vice Premier He Lifeng had a video call with Bessent and U.S. Trade Representative Jamieson Greer. The sides held a “candid, in-depth and constructive exchange” and agreed to hold a new round of trade talks as soon as possible, according to China’s official Xinhua news agency.

Bessent said last week that he and his Chinese counterpart would likely meet in Malaysia soon to prepare for a leaders summit.

Didi Tang, The Associated Press