On display: a changing balance between the US and China - salam
Salaam - The balance of influence between the United States and China looks different now compared with when Trump first started the trade conflict in 2018.
Gyeongju, South Korea - Observers are debating who gained more from the recent Trump–Xi meeting in South Korea, but most agree the overall balance of power has moved.
Xi Jinping arrived at the summit in a stronger negotiating position than in their 2019 encounter, and he left with some tangible wins, including a partial rollback of tech-related export controls. Even amid the formal handshakes and polite remarks, Xi framed the meeting as one of equals, using the image of two captains steering a ship together.
Analysts note China now sees itself much closer to being a peer to the US. Since 2018 Beijing has shored up its economy against external pressure and built tools to push back on Washington when needed.
After the US widened an export blacklist, China responded by tightening rules on exports of products containing rare earth elements - signaling it could use control over critical minerals (used in everything from phones to electric cars and military hardware) as leverage. With China dominating mining and processing of these materials, the move raised fears of major disruption to global supply chains.
China also reduced its dependence on US agricultural imports, especially soybeans, by shifting purchases to countries like Brazil and Argentina. That effective pause in buying US soy hit farmers in Midwestern states and posed domestic political problems for the US.
Observers say China learned to deal with Trump’s transactional style: the Chinese side appears willing to make deals when that best serves their goals, and they used that approach to their advantage this time.
The truce restored much of the relationship to how it was before Trump’s major tariff move in April. China agreed to resume some purchases of US soybeans and delay certain export controls on a subset of rare earths, though other controls remain. One concession that favors China is a cut in a tariff linked to fentanyl-related items from 20% to 10%.
Experts differ on long-term outcomes. Some argue the summit is a sign China’s position has improved and that the US must show more respect; others caution that the rivalry will continue to ebb and flow as each side adapts its tools and strategies.
In short: this summit reinforced that the dynamics between the two countries have changed since the early trade wars, and both sides will likely keep adjusting as the competition continues.
https://www.aljazeera.com/econ