U.S. President Donald Trump will meet Chinese President Xi Jinping this week as part of his trip to Asia, as the world’s top two economies seek to dial down tensions in search of a trade deal that has so far been elusive.

White House press secretary Karoline Leavitt told reporters last Thursday that Trump will meet his Chinese counterpart on Oct. 30 on the sidelines of the Asia-Pacific Economic Cooperation, or APEC, Summit.

“I think we are going to come out very well and everyone’s going to be very happy,” Trump said on Oct. 23 about his planned meeting with Xi.

South Korean presidential security advisor Wi Sung-lac confirmed on Oct. 23 the state visits by Trump and Xi during the APEC summit, although China has not officially made a statement about it.

It will be the first in-person meeting between the two heads of state since Trump returned to the office in January. The leaders, who have had at least two phone calls this year, last met in 2019 during Trump’s first presidential term.

The high-stakes meeting comes as a delicate trade detente between the economic superpowers nears its expiration on Nov. 10 if they fail to agree on another extension. Trump has also set Nov. 1 as the deadline for the additional 100% tariffs announced earlier this month.

The trade truce has been threatened in recent weeks by a fresh wave of restrictive measures, ranging from hefty port fees on each other’s vessels, expanded export controls on technology and rare earth minerals.

The two economic powers have also tussled over lingering issues including tariffs, agricultural purchases, fentanyl flows, and geopolitical flashpoints such as Taiwan.

“This will be a high-risk, high-reward leaders’ meeting,” said Han Shen Lin, China director of global consultancy firm The Asia Group. “Both sides will try to hit the ‘reset’ button” for a relationship rattled by the latest round of tit-for-tat restrictions, he added, while avoiding “any big headline concession.”

The two countries may agree to resume the ongoing trade talks, rather than a sweeping trade deal, Han said, stressing that deeper structural disputes have not been resolved and “may never be.”

Trump told reporters on Air Force One on Oct. 19 that rare earths, fentanyl, soybeans and Taiwan were among U.S.’ top issues for discussion with China. A senior Taiwanese foreign affairs official said Oct. 21 that Taipei is in close contact with Washington and will monitor closely the Trump-Xi meeting.

In a press briefing on China’s economic development plan on Oct. 24, Commerce Minister Wang Wentao stressed that the U.S. and China could still find ways to talk and work together, rather than slide toward decoupling.

China’s Ministry of Foreign Affairs and the Chinese Embassy in the U.S. did not immediately respond to a request for confirmation on Xi’s trip to South Korea.

The Chinese Commerce Ministry said Oct. 23 that a delegation led by Chinese Vice Premier He Lifeng, also the country’s top trade negotiator, will meet U.S. Treasury Secretary Scott Bessent in Malaysia this week to discuss trade and economic issues.

Beijing in early October dramatically expanded its restrictions on exports of rare earth minerals and related technologies, and Trump retaliated with threats of an additional 100% tariffs on Chinese goods. Bessent blasted China's move as an attempt at weakening the global economy and wanting to "pull everyone else down with them."

The Trump administration has also been considering limiting exports of large swaths of products built with American software to China, and reportedly plans to launch a trade investigation into China's failure to uphold the terms of a trade deal signed in Trump's first term.

Earlier this month, the U.S. president had floated the possibility of scrapping his meeting with Xi amid anger over Beijing's widened export controls on rare earth minerals. But in recent days, Trump has softened his rhetoric, touting his "great relationship" with Xi, saying he expected the talks to deliver a "good deal" on trade.

The president said Oct. 22 that he has a "long" meeting scheduled with Xi during the upcoming trip to South Korea, where he expects to reach a deal with the Chinese leader over soybean purchases and limits on nuclear weapons.

Facing sweeping U.S. tech restrictions in recent years, China has pledged to deepen its self-reliance on technology over the coming five years, the ruling Communist Party said in a new economic blueprint released Oct. 23.

In the press briefing on Oct. 24, Chinese leaders pointed to the complex external challenges, underscoring Beijing's drive to reduce its reliance on the U.S. while advancing its own technological ambitions.

While both sides retain significant leverage, Beijing appears "more willing to walk away from a deal that does not satisfy its objectives," said Gabriel Wildau, managing director at advisory firm Teneo, while Trump might want to avoid enforcing the 100% tariff threat.

Despite the recent escalation, the upcoming Trump-Xi meeting will be key to restoring "a measure of calm to the bilateral relations" and set the stage for a final negotiating push toward a trade deal in early 2026, Wildau added.

Trump is scheduled to travel to Tokyo on Oct. 27 for a meeting with Sanae Takaichi, Japan's new prime minister, before heading to South Korea.

— CNBC's Evelyn Cheng contributed to this report.