Trump-Xi: The 3 Issues Threatening Bitcoin and Cryptocurrencies

Red carpet and handshake. Donald Trump welcomes Xi Jinping this Thursday, September 24, at the White House. The Chinese leader had not set foot there for over ten years. Markets had placed this summit among the obstacles for Bitcoin. However, they received a gift even before the discussions opened.

Washington and Beijing indeed settled the most urgent issue the night before. The two capitals are extending their trade truce until January 10. The summit can therefore focus on what really annoys. Key points of this article:

• Xi Jinping was welcomed at the White House by Trump, marking a historic visit after more than ten years of absence.
• The trade truce between Washington and Beijing has been extended until January 10, allowing the summit to focus on explosive issues such as rare earths and Taiwan.

Busan Truce: Two Months of Pre-Paid Trade Peace

Scott Bessent announced this on Wednesday night on Fox News. The Treasury Secretary was just coming out of a meeting with Chinese Vice Premier He Lifeng. Trump and Xi had concluded the Busan truce in South Korea at the end of October 2025. It was set to expire on November 10. Now, it runs until January 10, according to NBC News.

Let’s first recall what this compromise entails. Washington has halved its surtax related to fentanyl, from 20% to 10%. Thus, the total customs charge on Chinese products has decreased from 57% to 47%. In exchange, Beijing has suspended its export restrictions on rare earths. Furthermore, China has promised to buy at least 25 million tons of American soybeans per year until 2028.

Two months is short. According to Bessent, both sides are exploring a broader agreement. The Chinese delegation reportedly proposed this idea on Sunday in New York. The tariff risk will therefore return to the table at the beginning of next year.

Rare Earths, AI, Taiwan: The Friction Points Between Trump and Xi

The first point of friction is rare earths. Washington believes that China has not fully honored its commitments regarding export licenses. These metals remain essential for electric motors, chips, and missiles. Gallium, germanium, and antimony are part of the lot. Moreover, a bilateral trade office is now operational, according to Trade Representative Jamieson Greer. It is meant to facilitate exchanges without national security concerns.

Artificial intelligence comes right behind. According to Bessent, the two countries agreed on Sunday to establish a direct line to report incidents related to AI. However, Chinese state media only state that the two parties discussed the topic. Meanwhile, Beijing is investigating DeepSeek and Moonshot AI. Anthropic accuses these two companies of having trained their models on Claude.

Then there is Taiwan. However, the most explosive issue has not been the subject of any prior announcement. A sale of American arms to the island is still pending the outcome of the discussions. Another topic to watch is the Chinese "overcapacities". The USTR, the office of the U.S. Trade Representative, was supposed to publish its conclusions on this point. A surtax of 7.5% is at stake. However, the administration is expected to postpone this announcement at least until after the summit.

Trump-Xi Summit: What Crypto Markets Have Already Integrated

The day's program is quite a spectacle. First, a review of the honor guard in the rose garden. Then, meetings in the Oval Office and later in the Cabinet Room. Finally, tea in a small committee in the afternoon and a state dinner in the East Room in the evening. Observers, however, do not expect a spectacular breakthrough.

Investors largely anticipated the extension of the truce, notes the specialized site investingLive. The real test is therefore on the scope of the agreement. A simple renewal would leave the markets in uncertainty starting in January. Conversely, a broader framework would lower the risk premium on Asian assets and the yuan. For Bitcoin, each new trade tension also weighs on inflation expectations. The U.S. ten-year rate, above 5%, is already shaking it.

However, the Busan precedent invites caution. During the meeting on October 30, 2025, no joint press conference followed. Bitcoin then dropped to around $108,000. It later surpassed $111,000 once the tariff reductions were confirmed. Finally, Trump and Xi could meet up to four times this year. Both sides are already discussing meetings in Shenzhen and Miami.

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