U.S. and China Signal Trade Progress Ahead of Trump-Xi Meeting

Summary

WSJ What’s News Podcast Summary

Episode: U.S. and China Signal Trade Progress Ahead of Trump-Xi Meeting
Date: October 27, 2025
Host: Caitlin McCabe (The Wall Street Journal)

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Episode Overview

This episode delivers key updates on global markets, trade progress between the U.S. and Asia, rising gender pay disparities in the U.S., and political shifts in Argentina that have implications for American foreign aid. The show focuses heavily on President Trump’s Asia tour, upcoming U.S.-China trade negotiations, and significant movements in business, politics, and labor economics.

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Key Discussion Points & Insights

1. Trump’s Asia Tour & Purpose of the Visit

• Summary: President Trump kicks off a week-long trip across Asia, beginning in Malaysia with ceremonial grandeur. The visit combines political, diplomatic, and economic objectives, including trade deals and conflict resolution.
• Key Insight: The administration highlights new trade agreements and frameworks with Malaysia, Cambodia, Thailand, and Vietnam. Trump’s role as a dealmaker and peacemaker is foregrounded.
• Notable Quote:
  • Meredith McGraw: “The President kicked it off with the visit to ASEAN and Malaysia where he wanted to show off that he's a peacemaker and a deal maker.” (02:13)

Tactics Used by Asian Leaders

• Lavish arrival ceremonies are used deliberately by host countries to appeal to President Trump’s fondness for spectacle, hoping to gain diplomatic and economic concessions.
• Notable Quote:
  • Meredith McGraw: “He loves the pomp and circumstance...foreign leaders really try to curry favor with him by putting on a grand show...to try to get some relief from him, whether it's tariffs or his demands for them to spend more on defense.” (02:57)

Upcoming Trump-Xi Meeting

• The Trump-Xi summit later in the week is set as the trip’s centerpiece, with critical issues on the table: TikTok policy, fentanyl controls, agricultural (soybean) exports, and tariffs.
• Optimism is expressed by both the President and top negotiators, although key disagreements remain.
• Notable Quote:
  • Meredith McGraw: “They're hoping to at least get some sort of agreement on TikTok, on fentanyl, on agricultural imports, on soybean exports and tariffs.” (04:02)
• Tone: Optimistic but acknowledging there are significant “wild card” issues yet.

2. Markets React to Thawing U.S.-China Tensions

• Both Asian and U.S. markets rally on news of “constructive” trade talks and optimism on U.S.-China progress.

  • Shanghai Composite Index hits a 10-year high.
  • Japan’s Nikkei tops 50,000 for the first time.

• Notable Quote:

  • Harriet Tory: “We have a really good chance of making a very comprehensive deal.” (04:58)

3. Argentina’s Political Shift

• Event: Ukrainian-born President Javier Milei’s party wins 41% of Argentina’s midterm vote, doubling their seats in Congress and strengthening U.S.-Argentinian ties. This is seen as a mandate for his "shock-therapy" economic reforms.
• Impact: Bolsters support for a U.S. and IMF financial aid package tied to election results.
• Notable Quote:
  • Chelsea Delaney: “There was concern...that this election would be a bit of a washout for Milei's party. Instead, the exact opposite has happened...They’ve won almost 41% of the vote and that basically doubles their representation in Congress.” (05:51)
  • Chelsea Delaney (on Trump’s stance): “Trump literally said if he wins, we're staying with him. If he doesn't win, we're gone.” (07:21)

4. U.S. Gender Pay Gap Widens

• Key Point: Gender pay gap in the U.S. reaches its widest point since 2016 (women at 81 cents on the dollar compared to men), reversing long-term narrowing trends.
• Main Causes:
  • The return-to-office drive post-pandemic is often forcing women to choose between flexibility and pay.
  • Childcare challenges remain a persistent issue.
  • “Flexible” remote options often translate into lower-paying roles.
• Case Example:
  • Jane Varble (worker): Took a 25% pay cut for remote work due to family demands, but gained time and some cost savings. (09:11)
    • Quote: “I was crying going into work just from pure exhaustion...now all of a sudden I’m running on maybe four or five hours of sleep if I’m lucky.” (09:11)
• Expert Analysis:
  • Harriet Tory: “Childcare is very expensive and very scarce to find in the U.S. and that is definitely a big problem for parents, especially women. But another thing...is the drive to get workers back into offices...a huge problem for a lot of women.” (10:07)
  • Wage gap is expected to decrease in the long-term due to women’s education gains, but the measure is imperfect due to differences in part-time work, career choice, and overtime.

5. Major Business and Regulatory Updates

• Novartis Acquisition: Swiss firm Novartis acquires Avidity BioSciences for $12 billion to expand its neuromuscular disorder treatments. The move is seen as a strategic bet on experimental drugs and the muscular dystrophy market.
• Microsoft Sued in Australia: The Australian Competition and Consumer Commission sues Microsoft for allegedly misleading millions of customers over opt-outs from AI service fees tied to Microsoft 365 renewals. Microsoft says it is reviewing the claims.

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Timestamps for Important Segments

• Trump’s Asia Tour overview & trade pacts: 00:51–02:13
• Purpose & tactics of the trip, discussion with Meredith McGraw: 02:13–03:51
• Expectations for Trump-Xi Jinping summit: 03:51–04:33
• Markets respond to thawing U.S.-China trade tensions: 04:38–05:01
• Argentina’s Milei election & U.S. aid implications (with Chelsea Delaney): 05:51–07:46
• Gender pay gap, return-to-office, and family impact (with direct worker and expert interviews): 08:43–11:31
• Novartis’s Avidity BioSciences acquisition: 11:31–12:00
• Microsoft sued by Australian regulator over AI subscriptions: 12:00–12:31

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Memorable Moments & Quotes

• On diplomatic spectacle:

  • “He loves the pomp and circumstance...foreign leaders really try to curry favor with him...to get some relief from him, whether it's tariffs or his demands for them to spend more on defense.” – Meredith McGraw (02:57)

• On women’s workplace struggles:

  • “I was crying going into work just from pure exhaustion...now all of a sudden I’m running on maybe four or five hours of sleep if I’m lucky.” – Jane Varble, remote worker (09:11)
  • “Childcare is very expensive and very scarce to find in the U.S...the drive to get workers back into offices...a huge problem for a lot of women.” – Harriet Tory (10:07)
  • “The gender pay gap has been widening for two years in a row. That hasn't happened in a very long time.” – Harriet Tory (00:45, 10:07)

• On Argentina’s political direction:

  • “Trump literally said if he wins, we're staying with him. If he doesn't win, we're gone.” – Chelsea Delaney (07:21)

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Summary

This episode covers President Trump’s Asia tour, focusing on the U.S.-China trade dynamic ahead of a pivotal meeting with Xi Jinping. Markets are reacting positively to this diplomatic thaw, while significant news from Argentina shows the U.S. tying aid to political outcomes. In domestic news, the U.S. gender pay gap is expanding due to post-pandemic workplace policies and persistent family care burdens, with in-depth reporting illuminating the lived experiences behind the statistics. The round-up is rounded out by a major biotech acquisition and regulatory actions against Big Tech, making this a concise but comprehensive update on the forces shaping global markets and society.

Transcript

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[Caitlin McCabe]

President Trump's tour through Asia continues after reaching trade pacts with several nations. Plus the US gender pay gap hits its widest level since 2016.

[Harriet Tory]

The gender pay gap has been widening for two years in a row. That hasn't happened in a very long time.

[Caitlin McCabe]

And Javier Millet scores a decisive victory in Argentina, shoring up his standing with Washington. It's Monday, October 27th. I'm Caitlin McCabe for the Wall Street Journal and here is the AM edition of what's news, the top headlines and business stories moving your world today. President Trump touched down in Asia Saturday for the start of his week long swing across the continent. His first stop, Malaysia, where Trump was greeted with a great deal of pomp and circumstance. Touching down in Kuala Lumpur, Trump ARR to a tarmac filled with troops, dancers, music and the country's prime minister who joined Trump in his limo, known as the Beast, as they sped off to a summit of the association of Southeast Asian Nations. In the days since, the administration said it reached trade agreements with Malaysia and Cambodia and frameworks for deals with Thailand and Vietnam. Trump also presided over the signing of a peace deal between Cambodia and Thailand which clashed in July over a long running border dispute. The Journal's merit. Meredith McGraw is traveling with the President on this visit and joins me now. Meredith, seems like it's been a busy couple of days in Asia. Can we back up for a second? What is the purpose of this trip?

[Meredith McGraw]

Well, there are a few different things going on with this trip. The President kicked it off with the visit to ASEAN and Malaysia where he wanted to show off that he's a peacemaker and a deal maker. And now as he moves on to Tokyo and then to Korea, trade really continues to be top of mind for these countries. And then of course, all eyes are going to be on this high stakes meeting with Trump and Chinese President Xi Jinping later on this week.

[Caitlin McCabe]

We talked earlier about the lavish ceremony that welcomed Trump as he touched down Saturday. What does this tell us about the tactics countries are using to sway the Trump administration?

[Meredith McGraw]

Well, the President has always loved a good show. He loves the Pomp and circumstance. He really enjoys the laughter, lavish arrival ceremonies. So what we've seen from a lot of these foreign leaders is that they really try to curry favor with him by putting on a grand show and really trying to use flattery and these big lavish events to try to get some relief from him, whether it's tariffs or his demands for them to spend more on defense. The president's going to be having a bilateral meeting with the new prime minister of Japan and she is viewed as a kind, kind of protege to the late Prime Minister Shinzo Abe, who we know President Trump was very close to. So this will be their first big meeting and the first test of that new relationship with her.

[Caitlin McCabe]

Meredith, you mentioned he has a few more stops leading up to this pretty pivotal meeting with Chinese leader Xi Jinping. What can we expect from this meeting later this week?

[Meredith McGraw]

Well, the president has sounded quite optimistic. Treasury Secretary Scott Besant was in Malaysia along with USTR Rep. Jamison Greer. And they've really projected a lot of optimism and confidence. But there's still some other, you know, wild card issues that they need to figure out. But they're hoping to at least get some sort of agreement on TikTok, on fentanyl, on agricultural imports, on soybean exports and tariffs.

[Caitlin McCabe]

That's the Journal's Meredith Magrat joining us from Tokyo. Meredith, thanks for being here.

[Meredith McGraw]

Thanks for having me.

[Caitlin McCabe]

Ahead of that meeting between Trump and Xi this week, top US And Chinese negotiators reported constructive trade talks over the weekend. In Malaysia, President Trump sounded positive about the prospects of a deal as he spoke to reporters on Air Force One on his way to Malaysia. We'll be talking about a lot of things. I think we have, I think we.

[Harriet Tory]

Have a really good chance of making a very comprehensive deal.

[Caitlin McCabe]

Signs of thawing tensions boosted markets this morning with Asian indexes and US futures gaining. China's Shanghai Composite Index touched a fresh 10 year high on Monday, while Japan's Nikkei stock average rose above 50,000 for the first time. To Argentina now, where President Xavier Milei scored a decisive political victory yesterday in the country's midterm elections after his Freedom Advances party won almost 41% of the national vote. The win strengthens his position in Argentina's Congress and secures a lifeline for his audacious free market revolution backed by President Trump. Journal reporter Chelsea Delaney has been following the results. Chelsea, why is this such an important victory for Milei?

[Chelsea Delaney]

Well, there had been a lot of concern coming into this election that support for Milei's policies was eroding. He's been on this mission to cut a lot of spending, to cut jobs in Argentina. And he's called the shock therapy, but it's caused a lot of pain. So coming into this, there was concern that this election would be a bit of a washout for Milei's party. Instead, the exact opposite has happened. They've really come in much stronger than any of the pollsters had expected. They've won almost 41% of the vote and that basically doubles their representation in Congress. And it's a really crucial threshold because it now means they have at least a third of seats in both chambers. It gives Milei a lot more power and carry carrying out this agenda.

[Caitlin McCabe]

And how are we seeing markets reacting to the results?

[Chelsea Delaney]

Argentine markets aren't open yet, but most people are expecting this will be pretty good for them. So we could see the Argentinian bonds rally, we could see the peso rally. There was a bit of a run on the peso coming into this election because of all these concerns about whether the election result would derail Milei's reforms. So we could see that recover as well.

[Caitlin McCabe]

And we've been reporting on this financial aid package that the White House is putting together for Argentina. Argentina. We've reported in the past that Trump has said that that aid package was basically contingent on how Milei performed in these elections. With Milei having won, what does this mean going forward?

[Chelsea Delaney]

Yeah, I mean, Trump literally said if he wins, we're staying with him. If he doesn't, when we're gone. Malay's party has gotten stronger. I would expect the US to continue ahead with this bailout package. Crucially as well, the election result, the fact that they do have this mandate to continue with these reforms will also help that keep them in good standing with the International Monetary Fund, which has a massive aid package. So all of those will likely remain on track because of this strong election outcome result for Milei.

[Caitlin McCabe]

That's Journal reporter Chelsea Delaney. Chelsea, thanks for joining us.

[Chelsea Delaney]

Thanks for having me.

[Caitlin McCabe]

Coming up with women's pay falling behind, we explore whether return to the office policies are to blame. Plus, Microsoft finds itself in the crosshairs of Australian regulators. Those stories and more after the break.

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[Caitlin McCabe]

Women make workforce gains in the US but their pay growth isn't keeping pace with men's. My colleague Alex Osla says that some women who want to keep working from home after the pandemic are finding that flexibility with their work schedule comes with a price.

[Alex Osla]

Jane Varpel realized that when she came back from maternity leave in February, the remote work option at her St. Louis job had ended. She had too many responsibilities, an hour long commute each way, and her mental health suffered.

[Jane Varpel]

She said, I was crying going into work just from pure exhaustion because with my husband's job, like kids wake up crying in the middle of the night, I'm the one taking care of them. And so now all of a sudden I'm running on maybe four or five hours of sleep if I'm lucky.

[Alex Osla]

She took a 25% pay cut for her new, fully remote job, but she did see some savings of several hundred dollars a month on G car maintenance. Jane Varble story isn't unique Census Bureau data show the pay gap between men and women is getting bigger after decades of largely trending in the opposite direction. Women working full time made 81 cents to a man's dollar last year, the widest pay gap since 2016. And more recent numbers from the Labor Department indicate men are outpacing women this year, too, when it comes to weekly earnings growth. WSJ economics reporter Harriet Tory is here to tell us more. Harriet, what's behind this widening pay gap?

[Harriet Tory]

It's clear that childcare is very expensive and very scarce to find in the US and that is definitely a big problem for parents, especially women. But another thing that appears to be going on and that economists are pointed to is the drive to get workers back into offices. And that really seems to be a huge problem for a lot of women that I spoke to in the story. For a lot of those women working in white collar jobs, in some ways they have the flexibility to make a choice to leave the labor force or to take a different job with lower pay. We're seeing that reflected in labor force participation rates and also in the fact that the gender pay gap has been widening for two years in a row. That hasn't happened in a very long time.

[Alex Osla]

Yeah. Where do economists expect the wage gap to go in the near future?

[Harriet Tory]

Generally speaking, you would expect the wage gap to keep getting more and more narrow. And the reason for that is that women make up the lion's share of college graduates now. Women have more education than men on average in the labor force. Having said that, the gender wage gap itself is not a perfect measure because all it does is measure median earnings for full time workers across the board. It doesn't take into account that many women work part time, for instance, that men often will be taking overtime and working longer hours, and that also still to this day, men and women do tend to gravitate towards different careers, and often men's careers will perhaps have a higher risk premium and also more money.

[Caitlin McCabe]

That was Journal reporter Harriet Tory speaking to Alex Osulla. Swiss drugmaker Novartis is acquiring the San Diego based biotech Avidity BioSciences in a $12 billion deal. Novartis said the deal would further boost its long term focus on treating neuromuscular disorders. Avidity is developing experimental drugs based on emerging technology to treat forms of muscular dystrophy, a multi billion dollar market. Under the deal, Avidity shareholders would receive $72 a share, a 46% premium to Friday's close and Australia's consumer watchdog is suing Microsoft, alleging the US tech giant misled its 2.7 million customers by making it difficult for them to avoid paying for new artificial intelligence services. The Australian Competition and Consumer Commission filed a case Monday claiming Microsoft didn't clearly tell existing Microsoft 300 subscribers how to opt out for paying for co pilot AI tools when their annual plans renewed. Microsoft said it is reviewing the allegations. And that's it for what's news for this Monday morning. Today's show is produced by Kate Bullivant. Our supervising producer was Michael Cosmides and I'm Caitlin McCabe for the Wall Street Journal. We'll be back tonight with the new show. Until then, thanks for listening. How does F1 turn data into insights at 200 mph? AWS is how fans get inside the strategy. AWS powers next level innovation for millions of businesses.