U.S. and People’s Republic of China governments have officially confirmed that Xi Jinping and Donald Trump will meet this Thursday at Busan port city, South Korea, marking a historic moment between two leading powers. Beijing’s Foreign Ministry issued the announcement Wednesday afternoon, marking an unprecedented diplomatic occasion between a number of world’s leading powers. What announcement was made? Reuters +2 RTE
Chinese foreign ministry spokesperson stated that leaders would engage in “in-depth communications on strategic and long-term issues”. According to Reuters.
This announcement did not stipulate a comprehensive trade deal would be concluded between Washington and Beijing, but rather signalled fresh momentum between their bilateral relations. Reuters @1
Why This Summit Matters
The summit comes at a time of increasing tensions between China and the US in areas such as trade, technology, rare earths and security – areas in which analysts see an opportunity for de-escalating some conflicts. Analysts point to opportunities such as:

Markets responded positively to confirmation of a meeting between Trump and China’s representatives, showing signs of stabilization following weeks of anxiety over escalated tariff threats. Before officially announcing it, U.S. officials said a “very positive” framework had already been agreed upon during preparatory discussions, according to Financial Times sources.
China’s purchase of U.S. soybeans before attending the summit has been widely seen as a goodwill gesture and is considered among key agenda items of discussion at this summit. Whilst full details of what will be covered at the meeting have yet to be confirmed, some key issues likely on the table appear to include:

Export controls and trade tariffs affecting rare earth minerals, semiconductors and other strategic technologies have become a top concern in recent years, according to CBS News and Reuters respectively. Also at issue: agricultural trade (e.g. soybeans).
As part of this meeting, +1 will cover bilateral diplomatic relations and strategic stability, including possible regional and global ramifications of U.S.-China interactions; according to China’s foreign ministry emphasising that it would cover “strategic and long-term issues.”
Reuters + 1 can also assess potential outcomes and limitations from this interaction.

Analysts caution that, although expectations may be elevated, they must still remain cautious:

An ambitious trade deal should not be taken for granted–much rests on how well its details of policy and implementation are executed.

China has repeatedly warned against “unilateralism” and the “law of the jungle” in trade affairs, advocating instead a rules-based international system.
Even if a meeting produces an effective communique, implementation will remain difficult unless both sides can work towards providing concrete steps rather than just promises.

As world leaders gather in Busan, all eyes will be watching to see the language of their joint statements and pace of follow-up actions. Businesses, investors and geopolitical watchers alike could view the summit meeting as a turning point in U.S.-China relations – or just another high-profile photo op if any issues remain unresolved – though its real goal should be providing new impetus towards stabilizing one of the world’s most consequential bilateral relationships.