Christopher Luxon meets with South Korea President Lee Jae Myung, signs partnership

The Prime Minister says it's a "reality" the top two economies in the world will have tensions, "being straight up about that reality is okay".

Christopher Luxon says a meeting between President Donald Trump and President Xi Jinping is "very positive", echoing Xi's remarks that tensions between the two biggest economies are "inevitable".

"It's perfectly reasonable to have that position."

Speaking to reporters in Gyeongju, Luxon said it was good the two leaders had committed to meeting again in April, and any conversation between the leaders of the largest economies in the world is good.

"The more those leaders are talking together, the more they are planning on moving this thing forward, and ... that they can de-escalate those tensions - that is of the benefit to all of us," said Luxon.

Trump and Xi met on Thursday in South Korea, where the pair were both present for APEC, in a summit that lasted nearly two hours. Trump said tariffs on China would be cut to 47 percent - down from 57 percent. In exchange, Beijing would resume US soybean purchases, keep rare earths exports flowing and crack down on the illicit trade of fentanyl.

During the opening remarks, President Xi acknowledged the differences between the countries "national conditions", saying they didn't always see "eye to eye" and that it was normal to have frictions now and then. President Xi also indicated he considered China's development went hand in hand with President's Trump vision to make America great again.

"Our two countries are fully able to help each other succeed and prosper together," the interpreter repeated.

Luxon acknowledged that any leader of a country acts in that country's best national interests.

"I will act in New Zealand's national interest to advance our prosperity and also to advance our security.

"Every leader does that, and as they should, that is their job, to act in the national interest of the country that they're representing."

He said that didn't mean you agree with everybody, but that you should be able to build rapport and relationships where possible.

Luxon was particularly interested in the decision around rare earths, but pointed out this didn't have a direct impact on New Zealand. He did, however, indicate mining was something New Zealand should be more "forward leaning" on, in terms of opening up and developing that sector because the country also had minerals.

His second day in South Korea included a formal sit down with the president of the country.

President Lee welcomed Luxon by acknowleding the troops New Zealand sent during the Korean War despite not yet having diplomatic relations - a disproportionate number compared to the size of the population, he said.

President Lee acknowledged the free trade agreement between the two countries, and their economic, cultural and defence ties. He said the two countries must continue to strengthen their cooperation in order to continue prospering together in an international environment that was becoming more challening.

Luxon returned the acknowledgments, thanking Lee for hosting "so generously" a group of leaders the previous night for dinner. Luxon said it was important to build "bigger and broader and deeper" relationships across trade, defence and security.

Luxon said trade between New Zealand and South Korea had doubled since the FTA (free trade agreement) was signed 10 years ago, and the country was now New Zealand's fifth biggest trading partner.

He was excited to take that relationship further by entering into a Comprehensive Strategic Partnership with South Korea.

This would mean New Zealand and South Korea operated at a "much deeper level diplomatically", which would create confidnece to take on more New Zealand products and make more investments in New Zealand, said Luxon. In particular, it would look like "a lot more joint collaboration on some science efforts".

Luxon also spent the day visiting the United Nations Memorial Cemetery of Korea, laying a wreath during the commemorative ceremony. He told those gathered - including former Korean soldiers - he was in South Korea to attend APEC, but it was important for him to "pause here, at this place of very solemn remembrance" first, to "honour the sacrifices that made such peace possible".

"We recognise the sacrifice of all 6000 New Zealanders who served in the Korean War and whose efforts helped lay the foundation for the strong and enduring relationship we share with the Republic of Korea today.

"Laying this wreath is a gesture of respect, not only for the fallen, but for the enduring bond between our two great nations."

He then attended a New Zealand business celebration event at Skyline Luge, which operated out of Busan. General manager Dean Johnson said it was currently one of the top three attractions in Busan.

Finally, he had dinner with Australia's Anthony Albanese, Canada's Mark Carney and Singapore's Lawrence Wong, who he called his "good friends".

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