US President Donald Trump and Chinese President Xi Jinping have reached what former American diplomat Chas Freeman described as a "truce and tactical retreat" in their ongoing trade and technology disputes, following talks in Busan earlier this week.

Trump hailed the meeting as "amazing" and said it had produced an "outstanding group of decisions." Xi, for his part, stated that trade and economic growth should continue to be "the driving force behind China-US relations, not a stumbling block between the countries." Freeman, who previously served as Director of Chinese Affairs at the US State Department, told RIA Novosti that while the agreement temporarily eases tensions, "that process is unlikely to go smoothly."

He added that Trump’s policies toward Beijing had hurt the US economy and that their negative effects "have been temporarily alleviated" as China rescheduled its countermeasures and Washington made "tactical concessions." The former diplomat said the meeting "kicks the can down the road but does not represent a long-term solution," describing it as "a temporary, tactical mutual retreat" rather than a lasting breakthrough.

Trade Truce

As part of the arrangement, Chinese President Xi decided to pause restrictions on rare earth exports for one year, while the US agreed to halt sanctions on entities under 50 percent Chinese control. US Treasury Secretary Scott Bessent said the trade deal had been finalized and could be signed as soon as next week.

The talks also produced limited cooperation on fentanyl control. Freeman told RIA Novosti that China’s pledge to help curb the flow of precursor chemicals was "an important political gesture," though he doubted it would have much effect on the crisis, calling America’s fentanyl problem "demand-driven, not supply-driven."

Trump later announced that tariffs on Chinese goods would be reduced from 20 percent to 10 percent and wrote on Truth Social that Beijing "has strongly stated that they will work diligently with us to stop the flow of Fentanyl into our Country."

TikTok Deal

The Busan meeting also addressed negotiations over TikTok’s ownership. Freeman noted that "President Trump sought to nail down the framework of a TikTok deal," adding that the platform’s role in shaping youth opinion has made it a point of contention for the "Zionist Lobby," which he said seeks to "censor information about Israel’s maltreatment of the Palestinians." He warned that if the deal proceeds, "American oligarchs" gaining control of the app may attempt to enforce "strict censorship."

Trump signed an executive order in September, paving the way for the transfer of TikTok’s majority ownership to US investors. Vice President JD Vance said the company would be valued at "$14 billion after the deal is concluded."

Freeman concluded that while the Busan meeting produced short-term compromises on several fronts, the "strategic challenge of managing Sino-American relations to mutual advantage remains unresolved."

Read more: Trump nuclear test threat risks escalating tensions with China: NYT