Xi Jinping is preparing for a consequential meeting with Donald Trump. The two leaders are expected to connect on the sidelines of an international summit taking place in South Korea. If so, this meeting would be the first in-person discussion between the two leaders since Trump started his second term. The upcoming meeting represents a watershed moment for both countries. They are at the forefront of a new, convoluted pivot in history marked by trade conflict, tariffs, and tech competition.
During this high-stakes discussion, Xi aims to project China as an equal partner to the United States on the global stage. Recent events have sensed a major turning point in the power dynamics. This high-level meeting will be central for Xi to consolidate China’s strategic aims. As the world’s second-largest economy, China seeks to assert its position while managing its relationship with the U.S., which has historically been viewed as the dominant power.
Strategic Objectives of the Meeting
One of Xi’s main aims is to push the US to lower the tariffs that the US has set on China. Today’s average U.S. tariff on Chinese goods is more than 50%. Absent strong consensus during these negotiations, they can more than double. In recent months, Trump has expressed respect and warmth for Xi, which may influence the tone of their meeting.
Furthermore, China is trying to use the negotiations to roll back U.S. export controls that have made it increasingly difficult for them to access advanced technology. Unlike in past years, Beijing is confronting these challenges directly. It has doubled down on increasing tech and industrial self-sufficiency in its next five-year plan, which is already in high gear. This initiative is intended to lessen reliance on American products, especially in advanced industries like semiconductors.
“But from the US side, any tariff or any measures taken (by) the Chinese side has helped President Trump himself to learn the capacity of China is different from eight years ago … and he understands that what has changed – is the US is not the dominant power anymore,” – Wang Yiwei, Director of the Institute of International Affairs at Renmin University in Beijing.
Wang Wen, another expert in international affairs, asserts that China is “very calm in facing all these conflicts and difficulties set up by the United States.” Here, we see the disturbing pattern of China’s playbook for the remaining trade battles. It’s a signal that they’re serious about their confidence in navigating these challenges.
Trade Dynamics and Rare Earths Supply
That context raises the stakes of this meeting, especially as trade dynamics between the two nations are in flux. This is because China has been strategically diversifying its trade relationships to be less dependent on the U.S. market. It has gained and maintained a stranglehold in the rare earths global supply chain, a vital component in broadly all high-tech industries.
Retaliating against U.S. restrictions on technology access, China has instituted export controls on critical rare earth minerals. These measures are considered the Chinese response to U.S. regulations that undermine strides in China’s technology goals. The United States has struck back. As part of its strategy, it has threatened to impose new tariffs of as much as 100% on certain Chinese imports.
Both countries have expressed optimism after last week’s round of trade talks. U.S. Treasury Secretary reports suggest that Beijing may defer its controls on rare earths, indicating a potential thaw in relations. Achieving meaningful progress will require both sides to find common ground amidst their ongoing disputes.
“The United States is still a major partner; however, among China’s landscape, the US is losing its importance,” – Wang Wen.
The Chemistry Between Leaders
As Xi and Trump get ready for their meeting, analysts will be closely watching the personal chemistry between the two leaders. The fate of this meeting could determine whether we all start a new, constructive China-US relationship or continue down the path of hostility and resentment. Experts agree that keeping the spirit of equality, respect and mutual benefit at the forefront will be key to ensuring effective dialogue.
Shen Dingli, a prominent Chinese scholar, emphasizes that China aims to “coerce the US to not put sweeping sanctions on China.” This is indicative of China’s broader goal to create more of a cooperative versus a competitive or confrontational atmosphere.
“Upholding the spirit of equality, respect, and mutual benefit,” – Wang adds, highlighting the principles that should guide their interactions.
