US-China Leadership Summit: Are the US Economic Results Exaggerated?
At the U.S.-China leadership summit, heads of state U.S. President Donald Trump and Chinese President Xi Jinping agreed on improving the economic relationship between the two nations. Both countries will begin discussions aimed at mitigating trade friction. For the businesses of various countries that are integrated into the U.S.-China supply chain, it is good news that the two economic superpowers, which have repeatedly engaged in punitive tariffs and retaliation, are compromising, but the conciliatory mood was staged, and can’t be accepted at face value.
Trump and his camp, who are preparing for midterm elections in November, wanted to see positive results from the visit to China.
Tesla's Elon Musk and Apple's Tim Cook, executives of large international corporations, accompanied Trump to China, a move seen as a ploy aimed at casting Trump, who is flustered by sagging approval ratings, as a strong president who compelled China to open its market.
On May 17, the White House issued a document titled “Historic Deals … Delivering for American Workers, Farmers, and Industry," emphasizing that China will purchase 200 aircraft from Boeing, and also that China will increase its imports of American agricultural and livestock products.
However, the view that these are also exaggerated, empty promises is spreading within the U.S.
The Boeing purchase falls well below the previously reported figure of 500 aircraft, and China did not make any concrete references to expansion of agricultural and livestock imports.
Neither side made any announcement about the previously expected large scale purchase of U.S.-produced crude oil or drastic reductions in U.S.-Chinese tariffs, and stock prices for Boeing and other companies plummeted.
In an interview, Trump stated that “it's all about relationship. Have a very good relationship with President Xi … [even though] it sounds like something that doesn't mean anything.” The likelihood is that the outcomes weren’t as favorable as he initially hoped.
On the other hand, at the summit, Xi discussed the history between the U.S. and China, referencing the “responsibility as major countries," and pointing out that the two countries should be “building a constructive U.S.-China relationship of strategic stability.” There was no compromise on the Taiwan situation, as results were limited to a consensus on the need to “reopen the Strait of Hormuz” in the Middle East.
By seeing through Trump's short-term pursuit of profits, and taking a posture of engaging in a long-term approach to diplomacy (although making feasible deals), China, which is pushing Trump into this “U.S.-China relationship of strategic stability,” can be seen as cool-headed and calculated.
Four days after Trump's China visit, Russian President Vladimir Putin will arrive in China for a meeting with Xi. Alongside the Middle East situation, we hope to keep an eye on whether it will be a turning point in the war in Ukraine, which casts a large shadow over the world economy.
Trump and his camp, who are preparing for midterm elections in November, wanted to see positive results from the visit to China.
Tesla's Elon Musk and Apple's Tim Cook, executives of large international corporations, accompanied Trump to China, a move seen as a ploy aimed at casting Trump, who is flustered by sagging approval ratings, as a strong president who compelled China to open its market.
On May 17, the White House issued a document titled “Historic Deals … Delivering for American Workers, Farmers, and Industry," emphasizing that China will purchase 200 aircraft from Boeing, and also that China will increase its imports of American agricultural and livestock products.
However, the view that these are also exaggerated, empty promises is spreading within the U.S.
The Boeing purchase falls well below the previously reported figure of 500 aircraft, and China did not make any concrete references to expansion of agricultural and livestock imports.
Neither side made any announcement about the previously expected large scale purchase of U.S.-produced crude oil or drastic reductions in U.S.-Chinese tariffs, and stock prices for Boeing and other companies plummeted.
In an interview, Trump stated that “it's all about relationship. Have a very good relationship with President Xi … [even though] it sounds like something that doesn't mean anything.” The likelihood is that the outcomes weren’t as favorable as he initially hoped.
On the other hand, at the summit, Xi discussed the history between the U.S. and China, referencing the “responsibility as major countries," and pointing out that the two countries should be “building a constructive U.S.-China relationship of strategic stability.” There was no compromise on the Taiwan situation, as results were limited to a consensus on the need to “reopen the Strait of Hormuz” in the Middle East.
By seeing through Trump's short-term pursuit of profits, and taking a posture of engaging in a long-term approach to diplomacy (although making feasible deals), China, which is pushing Trump into this “U.S.-China relationship of strategic stability,” can be seen as cool-headed and calculated.
Four days after Trump's China visit, Russian President Vladimir Putin will arrive in China for a meeting with Xi. Alongside the Middle East situation, we hope to keep an eye on whether it will be a turning point in the war in Ukraine, which casts a large shadow over the world economy.
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