Trump says he thinks he'll strike 'great' trade deal with Xi during sit-down

"I think we're going to have a deal. I think it'll be a good deal for both. And that's really a great result, you know, that's better than fighting and going through all sorts of problems, and, you know, no reason for it," the US president said as he addressed CEOs at an Asia-Pacific Economic Cooperation summit in South Korea.

"I think it's going to be a great deal for both. So I'll be meeting him tomorrow. A lot of people are interested. They're also interested in what we're doing, but they're interested in that. I can tell you a lot the world is watching," he added.

The meeting is set to materialize following months of diplomatic maneuvering between Beijing and Washington as their bilateral trade war has ebbed and flowed for much of Trump's nine months in office. Treasury Secretary Scott Bessent said on Sunday that the US and China reached a “very substantial” framework for the upcoming summit.

Speaking to reporters aboard Air Force One en route to South Korea earlier Wednesday, Trump said Beijing would cooperate on curbing fentanyl exports and that he would likely reciprocate by lowering tariffs he imposed over the flow of the highly potent drug and its precursors.

“I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” he said.

Trump also said there will be trade talks on agricultural products and rare earth minerals, the latter of which has been a major focus after Beijing rolled out strict export controls on the vital materials.

China announced the new rare earth export restrictions earlier this month, prompting Trump to threaten to impose new tariffs, and limit the flow of software by Nov. 1. China's restrictions widen limits on processing and manufacturing technologies and prohibit cooperation with foreign companies without prior government authorization.

China dominates the global market in rare earths, producing more than 90% of the global supply,

Bessent told NBC News Sunday that he expects to reach "some kind of a deferral on the rare earth export controls that the Chinese had discussed."