China has confirmed that President Xi Jinping will meet with US President Donald Trump in South Korea on Thursday. The meeting is a highly anticipated one that traders and investors on both sides of the Pacific hope will ease months of trade tensions.

"The two heads of state will have in-depth communication on strategic and long-term issues," a Foreign Ministry spokesperson said on Wednesday, without directly referring to the trade deal the leaders of the world's two largest economies are expected to reach in the port city of Busan.

"We are willing to make joint efforts with the United States to promote positive outcomes from this meeting and provide new direction and impetus for the stable development of China-US relations," Guo Jiakun added.

Earlier on Wednesday, Trump said that he and President Xi would reach a "good agreement" for both countries, aboard Air Force One en route to South Korea.

Expectations that Trump and Xi will meet have helped stabilize markets over the past month after renewed tensions raised concerns that the two leaders might abandon talks aimed at resolving a tariff war that has disrupted global supply chains.

Washington blames the escalation in the trade war on Beijing's new rare earth export controls, while China insists it is caused by the US increasingly restricting the ability of Chinese companies to invest in America.

Xi will be in South Korea from Thursday to Saturday for the Asia-Pacific Economic Cooperation meeting and a state visit to the country. Trump will not attend the regional summit.

Washington and Beijing are also at odds over the flow of fentanyl, high-end chips, rare earth controls, and soybeans. Chinese state-owned COFCO purchased three cargoes of US soybeans ahead of the talks, according to trade sources, the country's first purchases of the US crop this year, and a move analysts said was likely a goodwill gesture ahead of the negotiations. (alg)

Source: Reuters