Goldman Sachs CEO David Solomon said he is optimistic about recent talks between President Donald Trump and Chinese President Xi Jinping, while warning that the United States needs to rethink decades of trade policy he believes were "a mistake."
"These are the two largest economies in the world, and it is very important that we get to a more constructive place than we've been over the course of the last couple of months," Solomon said to FOX Business' Liz Claman on Thursday's edition of "The Claman Countdown."
Solomon said that while he doesn’t expect a "significant decoupling" of the two economies, the talks could improve the trade system between the two superpowers.
"We have to have a system of rules and reciprocal agreements that are fair, that are level. We haven't had that," he said.
President Donald Trump sat down with Chinese President Xi Jinping for the first time in six years with hopes talks would benefit ongoing trade negotiations between the world leaders.
Trump said Thursday he will cut tariffs on Chinese imports following a highly anticipated meeting with Xi in South Korea, citing new understandings on fentanyl enforcement, farm trade and a pause on rare-earth export limits.
TRUMP AND XI STRIKE TRADE TRUCE: 5 KEY TAKEAWAYS FROM THE SOUTH KOREA SUMMIT
Tensions first flared in early October when Beijing announced plans to impose export controls on rare-earth magnets used in the production of electric vehicles and F-35 fighter jets. In response, Trump vowed to impose a 100% tariff on Chinese goods starting Nov. 1.
WHAT ARE TARIFFS, HOW DO THEY WORK AND WHO PAYS FOR THEM?
"Starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying," Trump previously posted on Truth Social, citing the country had taken an "extremely aggressive" stance on global trade.
Solomon criticized the past five decades of U.S. trade policy with China, calling the approach flawed and urging the current administration to focus on correcting it.
"The policy of the last 50 years, 'let's just participate, and it will all be fine,' that's been a mistake," he said.
"What the administration is doing to try to get clarity on a bunch of these things, I think is important, but ultimately we have to get to a place where the economies can, around a number of things, interact appropriately."
TREASURY SECRETARY SAYS TRUMP, XI DISCUSSED ‘BIGGER PICTURE IDEAS’ IN HISTORIC SOUTH KOREA MEETING
Ahead of Thursday’s summit, U.S. and Chinese aides signaled discussions would focus on tariffs, advanced technology exports, and supply chain competition — key sticking points that have long defined the relationship between the two nations.
Trump told reporters he believed the sides could find common ground.
After the talks, Trump said he and Xi had "an amazing meeting" and that both sides reached "an outstanding group of decisions" on key economic and security issues. Among them, the president said Xi agreed to begin immediate purchases of U.S. soybeans and other farm goods and that China would work "very hard" to block fentanyl from entering the United States.
Fox News’ Diana Stancy, Sophia Compton, Landon Mion and Alex Nitzberg contributed to this report.
