The tussle between the world's top two economies, which encompasses everything from rare earths to soybeans and port fees, has rocked markets and gummed up supply chains for months.
The meeting between the two men, their first face-to-face encounter since 2019, was due to start at 11:00 am (0200 GMT) in Busan, South Korea, according to the White House.
Xi departed Beijing on Thursday morning accompanied by top official Cai Qi, Foreign Minister Wang Yi and Vice Premier He Lifeng, state news agency Xinhua reported.
Trump was also headed to Busan's Gimhae airport to meet Xi with his delegation from the South Korean city of Gyeongju.
Following productive preparatory talks by top officials, Trump said on Wednesday on his way to South Korea that "a lot of problems are going to be solved".
"We have been talking to them, we're not just walking into the meeting cold... I think we're going to have a very good outcome for our country and for the world, actually," he said.
China's foreign ministry was more cautious, saying that Xi and Trump would have "in-depth" talks on "major issues".
"We are willing to work together with the US side to ensure that this meeting yields positive outcomes, provides new guidance and injects new momentum into the stable development of China-US relations," ministry spokesman Guo Jiakun said.
Trump indicated that the agreement would include lowering 20 percent tariffs on Chinese goods related to fentanyl, which has killed tens of thousands of Americans.
Of particular importance to Trump -- with an eye on US farmers -- is whether China will resume purchases of American soybeans.
US Treasury Secretary Scott Bessent said after the run-up talks in Malaysia that Beijing had agreed to "substantial" purchases.
Another major issue is export controls on rare earths announced by Beijing this month that prompted Trump to call the Xi summit into question.
Beijing holds a virtual monopoly on these materials, which are essential for sophisticated electronic components across a range of industries.
"There are still many unresolved issues between the two countries, given the complexity and sheer volume of their trade ties," said Yue Su at The Economist Intelligence Unit.
"The easiest wins could include removing port fees for ships or lifting some fentanyl-related tariffs, which fall fully under presidential authority. China, in turn, could agree to purchase more US commodities to show goodwill," Su told AFP.
- Crowning achievement -
The meeting is due to take place on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit of 21 countries in Gyeongju including the leaders of Japan, Australia and Canada.
It is the final stop on an Asia tour that saw Trump showered with praise and gifts, including a replica of an ancient Korean golden crown.
In Japan, new Prime Minister Sanae Takaichi said she would nominate Trump for the Nobel Peace Prize and gave him a putter and a gold-plated golf ball.
However, Trump's hopes of a re-run of his 2019 meeting with North Korean leader Kim Jong Un at the Demilitarized Zone frontier appear to have dashed.
Trump said though that they would meet in the "not too distant future" and that he would like to "straighten out" tensions between North and South Korea.
On Thursday, he hailed the military alliance with South Korea as "stronger than ever" and said he had given the green-light for Seoul to build a nuclear powered submarine.
- Taiwan surprise -
Even if Xi and Trump come to an agreement, it will not bring a halt to their nations' fierce economic, technological and strategic rivalry.
But the Republican leader will be able to flaunt his skills as a negotiator at a time when US households are growing impatient with persistent inflation.
A reconciliation in South Korea would also offer Trump the prospect of a lavish visit to China, similar to the one he made during his first term in 2017.
One surprise could be if Xi brings up Taiwan, with speculation that Beijing might press Trump to water down US backing for the self-ruled island.
Since 1979, Washington has recognised Beijing over Taipei as the sole legitimate Chinese power, even though the United States remains Taiwan's most powerful ally and its main arms supplier.
Five things to look out for when Xi meets Trump
Beijing (AFP) Oct 29, 2025 -
Diplomatic styles will clash on Thursday when US President Donald Trump meets Chinese leader Xi Jinping in South Korea, to seek a trade deal between the world's two largest economies.
Trump has hyped up the chances of an agreement, while Xi has been characteristically cagey on those prospects.
Here's what to expect when the leaders meet for the first time since 2019, in Busan:
- Styles clash -
Real estate mogul Trump has for weeks played up the chances of a grand deal with Xi, but he will face off with a lifelong Communist Party bureaucrat.
"Trump is personal and improvisational. Xi is the opposite," said Ryan Hass, senior fellow at the Brookings Institution.
"Trump relishes making deals. Xi concentrates on advancing long-term strategy," he said, adding "neither leader sees value for himself or his country in an unsuccessful meeting".
-Long-time friends -
The US president has consistently touted his personal connection with Xi, calling him a "friend" whom he "respects".
Xi has been less effusive but spent time with Trump at his Mar-a-Lago resort in 2017 -- where he praised Trump's granddaughter's Chinese -- and hosted the US president for a state visit to Beijing the same year.
Rebuilding their personal rapport could prove critical in stabilising combustible ties between the countries.
Their relationship "is probably the best thing going in US-China relations right now", according to Daniel Kritenbrink, the former top US diplomat for East Asia.
- Managing expectations -
Relations have soured in the six years since Xi and Trump last met, with deep ruptures on trade, technology, and Taiwan.
While Trump said on Wednesday he expects a "great meeting" with his Chinese counterpart, stabilisation is likely to be the top priority, according to Kritenbrink.
Shao Yuqun, a senior research fellow at the Shanghai Institutes for International Studies, said the meeting is unlikely to be groundbreaking "due to the many structural problems in the bilateral relationship".
Even if Trump and Xi appear all smiles in South Korea, "it is very likely that the bilateral relationship will further deteriorate after the summit", she said at a recent event on China-US relations in Shanghai.
Their last meeting in 2019 ended with a tentative trade truce, but the agreement quickly unravelled when Covid-19 rocked the global economy.
- On the table -
What began in Trump's first term as US gripes over bilateral trade imbalances has morphed into a broad economic and strategic showdown.
Trump has said he wants China to buy more US soybeans after the country halted all purchases, which totalled $12.6 billion in 2024.
Securing US access to Chinese rare earth minerals is a top priority, as China's export controls on the critical elements could throttle US technology and military sectors.
Eyes will also be on the expected lowering of Trump's fentanyl-based tariffs, any alleviation of US restrictions on high-end semiconductor exports, the transfer of TikTok to US ownership, and removing the port fees each side has levied on the other's ships.
But Taiwan remains the "most important" issue in the relationship, according to Wu Xinbo at Fudan University's Institute of International Studies.
The self-ruled island, claimed by China and reliant on arms sales from the US for its defence, is "the only issue that will bring our two countries to a head-on conflict", Wu said.
Trump did not rule out Taiwan coming up in talks, saying Xi "might want to talk about it".
- Photo op? -
Details of the format for the meeting have been scant.
While Trump relishes engaging with the press and adlibbing his way through speeches, Xi favours formal meetings and delivering scripted remarks at major events.
Xi held a joint press conference with Trump in 2017.
It is unclear whether the leaders will shake hands in front of the cameras, and even the venue for their meeting has not been officially confirmed.
Wherever they meet, their delegations will differ significantly from 2019.
China's chief negotiator then, Liu He, has retired, while Trump's team is almost entirely changed from his first term.
However, Secretary of State Marco Rubio, a China hawk sanctioned by Beijing in 2020 for his criticism of the country, is likely to be in the room.
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