Xi Jinping Warns Against 'Vicious Cycle of Retaliation' as Talk of a New 'G2 Era' Surges

Xi and Trump in Busan Vow to Avoid 'Vicious Cycle of Retaliation,' Fueling Talk of a 'G2 Era'

At the US-China summit held in Busan on October 30, 2025, Chinese President Xi Jinping emphasized that relations between the two countries must not fall into a vicious cycle of mutual retaliation. President Xi stressed the need to resolve issues through dialogue rather than confrontation, expressing his commitment to fostering constructive relations. Analysts in China suggest that this summit could mark a new turning point in US-China relations and signal the dawn of a so-called 'G2 Era.' In particular, with both leaders acknowledging the potential for cooperation in various fields, including economy and security, attention is focused on whether US-China relations can enter a stable trajectory. During the summit, President Xi Jinping highlighted China's economic growth, noting a 5.2% growth rate from January to September this year. He argued that this economic growth does not conflict with Donald Trump's goal of 'Making America Great Again (MAGA),' and that cooperative measures should be sought to promote mutual benefits. Furthermore, President Xi acknowledged Trump’s genuine concern for world peace and his deep understanding of various conflict zones around the world. This is interpreted as demonstrating China's commitment to contributing to international stability and prosperity through improved relations with the United States. Following the summit, the United States and China announced concrete economic cooperation measures. The Department of Commerce decided to lift tariffs related to fentanyl and to suspend additional 24% tariffs imposed on Chinese goods, including those from Hong Kong, for one year. In addition, China agreed to suspend export controls on rare earth-related technologies and to halt the imposition of U.S. vessel entry fees for one year. These measures are seen as part of an effort to ease trade tensions and expand economic cooperation between the two countries. Experts predict that this agreement will have a positive impact on both economies, and that further cooperation measures are likely to be discussed. Donald Trump did not hold back his praise for the outcome of the US-China summit. While explaining the summit results to the White House press corps at the Gimhae Air Force Base, he expressed satisfaction, rating it '12 out of 10.' Trump called Xi Jinping a 'very tough negotiator,' and highly praised the achievement of an agreement for mutual benefit despite the difficult negotiation process. Trump also expressed his anticipation for a visit to China in early 2026 and formally invited Xi Jinping to visit the United States. This is interpreted as showing a commitment to the continued development of relations between the two countries. Meanwhile, Kim Hye-kyung, the wife of South Korean politician Lee Jae-myung, actively promoted 'K-culture' by engaging in discussions with Diana Fox Carney at the Gyeongju National Museum in conjunction with the South Korea-Canada summit. Mrs. Kim, along with Mrs. Carney and others, attended a Hanbok fashion show at Gyeongju Woljeong Bridge, working to promote the beauty of Korean culture. She focused on introducing Korean traditions and culture to global visitors to Gyeongju. At the summit, President Xi Jinping emphasized that 'China-US relations should move in the same direction on the right path.' He stressed the importance of bilateral relations and said that continuous efforts should be made to maintain constructive and stable ties. President Xi's remarks are interpreted as highlighting that US-China relations should function as an important pillar contributing to international stability and prosperity, going beyond mere economic interests. Attention is now focused on whether the US and China can build mutual trust and move in a direction that pursues common interests as a result of this summit. This summit is expected to be a major turning point that will determine the future of US-China relations.