From tariffs to TikTok, rare-earth metals to fentanyl, a packed agenda awaits the leaders of the US and China, the world’s two largest economies.

United States President Donald Trump expects “a lot of problems” will be solved between Washington and Beijing when he meets China’s President Xi Jinping in South Korea for a high-stakes meeting on Thursday, amid growing trade tensions between the two.

Relations between the two world powers have been strained in recent years, with Washington and Beijing imposing tit-for-tat trade tariffs topping 100 percent against each other this year, the US restricting its exports of semiconductors vital for artificial intelligence (AI) development and Beijing restricting exports of critical rare-earth metals which are vital for the defence industry and also the development of AI, among other issues.

Officials from Washington and Beijing have been locked in trade talks since August to de-escalate trade tensions, and they also came up with a framework for a trade deal during meetings in Malaysia over the weekend.

On the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, on Wednesday, Trump said an expected trade deal between China and the US would be good for both countries and “something very exciting for everybody”.

But only a meeting between Trump and Xi can confirm if a trade deal is really in the making. According to analysts, expectations of the two world powers’ ability to reset their relationship and agree to any deal at this meeting are low.

When are the two leaders meeting?

Trump is scheduled to meet Xi on Thursday in the port city of Busan in southeastern South Korea. The meeting is expected to start at 10am local time (01:00 GMT).

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It will be the first time the leaders have met in person since Trump returned to the White House in January. The US president last met Xi in 2019, during Trump’s first term, on the sidelines of the Group of 20 (G20) summit in Osaka, Japan.

“I think we’re going to have a great meeting with President Xi of China, and a lot of problems are going to be solved,” Trump told journalists on Wednesday on Air Force One while en route to South Korea.

On Wednesday, China’s Minist