US President Donald Trump emerged from his meeting with Chinese leader Xi Jinping announcing exuberantly that it was a 'great success', even rating it a 12 out of 10. However, the Chinese perspective was markedly different, with initial statements resembling an instruction manual and Xi urging for immediate follow-up efforts.
Trump eagerly anticipates a deal that could materialize pretty soon, but Beijing seems to be playing a longer game, focused on negotiations rather than quick resolutions.
The two leaders did outline a tentative agreement, including the US's potential reduction of tariffs on Chinese imports and a suspension of China's control on rare earth exports — critical minerals necessary for making advanced technologies, including smartphones and military equipment. Positively received by global markets, this agreement still represents a mere ceasefire in a prolonged economic conflict.
Despite this progress, analysts caution that the core competitive tensions between the world's largest economies remain unresolved. Kelly Ann Shaw, a former economic adviser to Trump, suggested that the US and China are on divergent paths and that managing the ongoing economic separation is paramount to limiting damage to both parties.
Deal-making with Trump often requires flattery, yet Xi's approach has been pragmatic, emphasizing China's longstanding economic power. As the two nations grapple with their economic relationship, Beijing's readiness to sustain the pressure of tariffs signals a determination not to yield significantly to US demands.
While the leaders' meeting fostered a sense of optimism for future negotiations, significant disparities continue to underlie their dealings. As Trump strives for a 'big deal', it seems Beijing is set on a steadier approach, suggesting that while the current atmosphere may be calm, the fierce rivalry is far from resolved.
