Washington and Beijing are preparing for a meeting that could reset the terms of the global economy. U.S. President Donald Trump and Chinese President Xi Jinping are expected to sit down on Thursday, with both capitals signaling that a trade compromise is within reach.

Speaking to reporters aboard Air Force One en route to Japan, President Trump said that the United States and China were “very close” to reaching a trade agreement. He emphasized his respect for the Chinese leader, adding, “I have great respect for President Xi, and I think we’re going to reach an understanding. It’s going to be very interesting.” Trump also suggested that a final agreement could include provisions regarding the Chinese-owned social media platform TikTok, which has been at the center of tensions over data security and foreign ownership.

The White House confirmed that the two leaders are set to meet Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. According to Press Secretary Karoline Leavitt, the meeting aims to “advance constructive dialogue” and explore ways to stabilize economic relations after years of escalating tariffs and strategic rivalry.

Beijing set its own tone ahead of the talks. At a forum in the Chinese capital, Foreign Minister Wang Yi urged an end to the politicization of trade and warned against artificial fragmentation of global markets. He said multilateralism has been strained by withdrawals from agreements and the formation of exclusive blocs, adding that a multipolar world is taking shape.

The stakes are clear. The United States wants stronger protections for intellectual property and a more level field for foreign firms. China wants fewer barriers to its exports and recognition that its economic model will not be redesigned by outside pressure. Each side is negotiating with domestic audiences in mind and each wants a deal that can be defended at home.

Markets will be closely watching how this meeting develops. Tariff rollbacks would lift sentiment across Asia and Europe, where manufacturers still feel the aftershocks of earlier rounds of penalties. Failure would revive questions about decoupling and accelerate efforts by multinationals to redraw supply lines that were once taken for granted.

Not to mention, there is also the case of the geopolitical overlay. A truce on trade could create space for a more disciplined rivalry, one that manages tensions over technology, data and security without tipping into open confrontation. A breakdown, on the other hand, would harden the view in both capitals that strategic competition must override commercial logic.

The history is not encouraging, but it might serve as a cautionary tale. Past mini deals slowed escalation but did not resolve the structural disputes that sit at the core of the relationship. The lesson for both leaders is that photo opportunities are cheap while verification, timelines and enforcement are what give an agreement weight.

By week’s end the world will know whether this meeting produces a roadmap with measurable steps or another placeholder that delays hard choices. The difference matters. Companies plan capital spending on the basis of rules they can trust, and households feel the outcome through prices they pay at the checkout line. If Trump and Xi can deliver clarity, even partial clarity, the dividends will extend well beyond the room where they meet.

By I. Constantin