[Young Journalist Hojun Lee] US President Donald Trump and Chinese President Xi Jinping held a summit meeting at the White House on the 24th (local time) to discuss key bilateral issues including Taiwan, Iran, trade, and artificial intelligence (AI). Following the meeting, President Trump described it as a "great meeting," but with fundamental differences between the two nations over Taiwan and advanced technology remaining, attention is focused on the future direction of negotiations.

President Trump and President Xi held a closed-door, one-on-one summit for about 30 minutes in the Oval Office at the White House that morning, followed by an expanded bilateral meeting with senior officials from both countries.

During the meeting, President Xi conveyed his hope that the US would maintain its stance against "Taiwanese independence" and handle the Taiwan issue with caution. China reaffirmed its existing position, defining the Taiwan issue as the core matter in US-China relations.

President Xi remarked, “China’s position on safeguarding national unity and territorial integrity is very clear,” mentioning that the United States must handle the Taiwan issue with prudence for the sake of bilateral strategic cooperation and the development of relations. 

The United States has traditionally used the phrasing that it "does not support" Taiwan independence. Reuters reported that this differs from the term "oppose" requested by China, and to date, no movement by the US government to change its existing phrasing has been confirmed.

The two countries also continued dialogue surrounding economic issues. The US side explained that they agreed to extend the existing US-China trade truce until January 10 next year. However, key sticking points—such as tariffs, Chinese purchases of American goods, rare earth supplies, and regulations on advanced technology—remained as tasks for follow-up negotiations. 

The fact that US-China tensions have not escalated further and the negotiation phase continues can be viewed as a factor that partially reduces uncertainty in global financial markets. Since the Korean stock market is also sensitive to US-China trade, advanced technology regulations, and shifts in the Chinese economy, it is likely to be influenced by the outcome of future negotiations between the two nations.

In particular, key domestic export industries such as semiconductors, batteries, automobiles, and chemicals count both the US and China as primary markets or supply chain bases. If trade friction and technology regulation disputes between the US and China ease, it could serve as positive catalyst for investment sentiment. Conversely, if restrictions surrounding advanced technology or rare earths tighten again, volatility in related sectors could increase.

In fact, the summit covered not only trade but also competition in AI and advanced technology as key agenda items. Reuters reported analyses suggesting that because AI competition between the two countries remains intense, achieving significant progress beyond a symbolic agreement will not be easy.

The Taiwan issue is another key variable watched closely by the domestic market. If tensions across the Taiwan Strait ease, the burden of East Asian geopolitical risk could diminish; however, if differences between the US and China resurface, it could heighten uncertainty across semiconductor supply chains and Asian financial markets as a whole. Diplomatic authorities from the US, South Korea, and Japan had also previously reaffirmed the importance of peace and stability in the Taiwan Strait and supply chain stability ahead of the summit.

During the meeting, President Xi also made remarks to the effect that the two nations "can overcome the Thucydides Trap." The Thucydides Trap is a concept that explains the possibility of competition between an emerging power and an established hegemon leading to military conflict.

President Xi emphasized that if the US and China cooperate, both can benefit, highlighting the need to strengthen military communication and crisis management systems. However, some analysts interpret that the mention of this concept itself demonstrates that strategic competition and military tension still persist between the two countries.

The Iran issue was also brought to the table.

President Xi stated that each country's sovereignty and security must be respected, expressing his view that the US and Iran should resolve issues through dialogue and negotiation. He also conveyed his hope that both sides would reach a comprehensive agreement, including on the nuclear issue.

After the summit, President Trump briefly told reporters on the White House grounds that it was a "great meeting." However, he offered no further detailed explanation regarding specific policy agreements.

Analysis suggests that whether domestic financial markets react strongly and immediately to this summit depends on the details of follow-up negotiations. While extending the trade truce lowers concerns over direct US-China confrontation, key issues that directly affect the market—such as tariffs, rare earths, and semiconductor and AI regulations—remain unresolved.

Accordingly, in the domestic market, actual investment sentiment is expected to be driven not by the friendly atmosphere of the summit itself, but by future variables such as whether tariffs and tech regulations are eased, economic and trade trends in China, and shifts in US-China relations surrounding Taiwan.

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