Seoul. WASHINGTON (AP) — U.S. President Donald Trump on Thursday announced that his meeting with Chinese President Xi Jinping in South Korea was “very successful” and that he would slash tariffs on China.

After the meeting, Beijing agreed to resume exports of rare earth elements and begin buying U.S. soybeans, he said. “We’re going to reduce the tariffs that we imposed earlier this year from 20 percent to 10 percent for selling fentanyl chemicals to China,” Trump told reporters aboard Air Force One. After this move, the overall tax rate on China has come down from 57 percent to 47 percent.

“On a scale of 0 to 10, if 10 is the best, I’d call this meeting 12,” Trump said with a laugh. He said he would visit China in April, and President Xi plans to visit the US sometime. At the same time, Nvidia said that it is in talks with China to export high-tech computer chips.

Trump said he hoped the two countries could sign a trade deal “very soon”. “We don’t have big obstacles right now,” he said. However, the long-term competition between the two countries remains. The world’s two largest economies are trying to maintain influence on international issues such as manufacturing, technology development such as artificial intelligence (AI) and the war in Ukraine.

After about 100 minutes of talks in the South Korean city of Busan, the two leaders pledged to reduce tensions and cooperate. “We may have different perspectives because of our different national backgrounds, but cooperation is essential,” Xi said, underlining the need to work together despite our differences. ’

Before the meeting, the US had threatened to impose a 100 percent import tariff on China. But the situation eased somewhat after the Chinese side showed signs of loosening export controls on rare earth elements and increasing purchases of U.S. agricultural products.

Describing the summit as a “G2 meeting”, Trump described it as a symbol of the leading role of the US and China in the global economy. The meeting was held in a normal atmosphere at the Busan military compound.

In general, the market has reacted positively. Business expectations have also increased in the US stock market. But analysts warn that the progress could be temporary. According to Craig Singleton, senior director of the Foundation for Defense of Democracies, the two countries are using this cooperation as a tool to counter instability, while competition persists.

Since last year, the Trump administration has phased in new tariffs on China. Part of this was linked to fentanyl-related issues. On October 10, Trump threatened to impose a 100 percent tariff on rare earths after China tightened its ban on rare earth exports. But as a result of the current agreement, the rate has dropped to 47 per cent, which he said would be “effective immediately”.

China dominates most of the world’s rare earth mineral production and refining. Earth minerals are essential for the manufacture of fighter jets, electric vehicles, robots and high-tech equipment.

Xi will stay in South Korea for the APEC summit, while Trump will return to Washington.

“President Xi wants to use this opportunity to establish China as a reliable partner and to strengthen relations with countries that are dissatisfied with tax policies,” said former U.S. official Jay Truesdale. ’