Key Outcomes of Busan meet 

• U.S. agreed to reduce a tariff punishing China for the flow of fentanyl into the U.S. by 10%.
  • Fentanyl is an opioid drug, like morphine or heroin, made entirely in laboratories with no natural ingredients.
• China agreed to extend for one year a pause on export controls of rare earth minerals.
  • Rare earths (group of 17 metallic elements) are used to produce magnets and other components used in missiles, aircraft, cars, refrigerators, other hi-tech devices etc.
• US president dubbed the meeting as G-2, a word first popularized by American economist C.F Bergsten in 2005.
  • G-2 envisaged the US and China as co-managers of global stability through joint responsibility on economic governance, trade imbalances, and global problem-solving. 

Implication of G2 for world 

• Relevance of Regional institutions: Like Quad, Aukus, which were put to counter China could be questioned as US and China move towards a strategic accommodation. 
• Shift Towards Bipolarity: G2 signals convergence between US and China as global powers and bilateral decisions on key global issues can undermine multipolarity and interests of global south.
• Dependence on China: The shift identifies global and American reliance on China for critical minerals and semiconductor supply chains. 
• Implications for India: US-China rapprochement could reduce the US’s reliance on India as a geopolitical counter to China while emboldening China’s assertiveness towards India.