Courtesy on Display, Tough Bargaining behind the Scenes: Superpower Truce Holds
Many commentators complain that the visit of the Chinese leader to Washington produced few concrete results, but the mere fact that both parties refrained from escalating tensions is already a success. Neither country is currently interested in a trade war.
There is no denying that U.S. President Donald Trump gave Chinese leader Xi Jinping a very gracious reception in Washington. He did not spare him the full range of protocol honors, such as welcoming him personally at the airport and hosting a dinner in the White House attended by American business leaders, in honor of the "distinguished guest."
“I met President Xi at the plane (Airport!) yesterday and he looks strong, vibrant, and fit - Better than ever," wrote Trump on Truth Social on Thursday morning. It was Xi Jinping's first visit to Washington since 2015. Earlier, in 2017, he visited Trump's residence at Mar-a-Lago, and in 2023, he went to the APEC summit in San Francisco.
Xi's message was largely conciliatory. “Achieving the great rejuvenation of the Chinese nation and making America great again can go hand in hand," he said at the White House. However, there were also elements of superpower assertiveness in this performance. Xi's arrival at Andrews Air Force Base and the White House was accompanied by a flyover by U.S. strategic bombers. Xi, on the other hand, tried to persuade Trump to declare his opposition to Taiwan's independence. According to leaked reports, the discussions covered expanding Chinese nuclear forces, and China urged the U.S. and Iran to return to negotiations. Earlier, the U.S.-China trade truce and the commencement of the dialogue on artificial intelligence were postponed for two months — until Jan. 10, 2027. There were few tangible economic takeaways, which disappointed investors. Analysts had not expected a major breakthrough in relations between the two superpowers. The summit between Trump and Xi Jinping was a small victory for both countries. After all, neither side is interested in the escalation of trade wars. They prefer to quiet their disputes so they can catch their breath.
Preventing Further Escalation
In October 2025, before his meeting with Xi Jinping in Busan, Trump threatened significant tariffs on Chinese products. Before this year's May summit in Beijing, the U.S. president announced a 50% tariff increase on Chinese products. This time, there were no such threats. The shift in rhetoric could be linked to a prolonged war with Iran. The Americans are not interested in escalating the situation because they are in talks with China to extend the truce on access to Chinese rare earth metals. The Chinese government severely restricted exports of these raw materials last year in response to U.S. tariff hikes. The U.S. defense industry felt the impact acutely. It relaxed these restrictions in October 2025 at the Busan summit. This truce ends at the turn of the year, but the atmosphere at the summit in Washington suggested that it would be extended.
"Extending the truce buys Washington time, and time is crucial here. Each month of delay is a month the administration uses to build the map I described on Tuesday: the Greenland security agreement, the $10 billion Project Vault reserve that Glencore joined yesterday, the $400 million scandium mine in Australia, tungsten supplies from Korea, and refining capacity funded under the Defense Production Act. Even in the week leading up to the summit, when Trump was biting his tongue on tariffs, Washington quietly banned exports of tungsten scrap. The administration felt it couldn't negotiate a way out of this wedge, so it's trying to buy a way out of it — and the truce gives it the necessary peace of mind to do so,”* said Graham Summers, chief market strategist at Phoenix Capital Research.
Beijing has no desire to escalate the conflict either. The Chinese economy is slowing — GDP growth slowed from 5% in the first quarter to 4.3% in the second — and the conflict in the Middle East threatens China's energy security. The U.S. has succeeded in taking control of Venezuela's oil, which until now has been the main source of energy for the Chinese economy. The Americans, on the other hand, have left themselves the option of hitting China with new tariff hikes — as part of the Lindsey Graham Act (targeting countries that trade with Russia) and actions aimed at excluding Iran from world markets. However, they refrain from using this weapon. Similarly, China is not resorting to cutting off the U.S. from its rare earth metals.
"China and the U.S., as two major countries, stand to gain from cooperation and will both lose in confrontation. China and the U.S. do not need to avoid mentioning competition, but the competition should be a healthy one and should be kept within bounds. It should be a race of catching up with one another, not a wrestling match in which one either wins or loses," Xi said.
Points of Disagreement
Of course, there are still many unresolved issues between the superpowers. China continues to buy Iranian oil and is holding parts for F-35 fighter jets sent to Hong Kong under unexplained circumstances. It is also accused of supplying weapons and intelligence to Iran and the Yemeni Houthis. CNN reported Friday, citing four anonymous sources, that "Chinese groups" were providing Iran with data to enable targeted strikes on ships in the Persian Gulf and on U.S. bases in the Middle East. In July, Trump accused China of massive theft of U.S. voter data ahead of the 2020 election. During Xi Jinping's visit, however, he remained silent about all this. This, of course, provoked criticism from his opponents.
“In return for China breaking nearly every trade promise it has made, Trump is rolling out the red carpet for President Xi. There is no evidence that Trump is using this opportunity to push back on the Chinese government policies that hurt our workers and businesses, from forced labor to state subsidies. ... Donald Trump is giving away the store to China and leaving American families with the bill," said Democratic Sen. Ron Wyden of Oregon.
It seems, however, that neither Trump nor Xi has made any major concessions to the other. They only confirmed that they will not further escalate tensions. Only that. And yet, perhaps, quite a lot. In the face of a highly uncertain and dangerous global situation, such assurances should be regarded as a success.
*Editor's note: Although accurately translated, this quoted passage could not be independently verified.
There is no denying that U.S. President Donald Trump gave Chinese leader Xi Jinping a very gracious reception in Washington. He did not spare him the full range of protocol honors, such as welcoming him personally at the airport and hosting a dinner in the White House attended by American business leaders, in honor of the "distinguished guest."
“I met President Xi at the plane (Airport!) yesterday and he looks strong, vibrant, and fit - Better than ever," wrote Trump on Truth Social on Thursday morning. It was Xi Jinping's first visit to Washington since 2015. Earlier, in 2017, he visited Trump's residence at Mar-a-Lago, and in 2023, he went to the APEC summit in San Francisco.
Xi's message was largely conciliatory. “Achieving the great rejuvenation of the Chinese nation and making America great again can go hand in hand," he said at the White House. However, there were also elements of superpower assertiveness in this performance. Xi's arrival at Andrews Air Force Base and the White House was accompanied by a flyover by U.S. strategic bombers. Xi, on the other hand, tried to persuade Trump to declare his opposition to Taiwan's independence. According to leaked reports, the discussions covered expanding Chinese nuclear forces, and China urged the U.S. and Iran to return to negotiations. Earlier, the U.S.-China trade truce and the commencement of the dialogue on artificial intelligence were postponed for two months — until Jan. 10, 2027. There were few tangible economic takeaways, which disappointed investors. Analysts had not expected a major breakthrough in relations between the two superpowers. The summit between Trump and Xi Jinping was a small victory for both countries. After all, neither side is interested in the escalation of trade wars. They prefer to quiet their disputes so they can catch their breath.
Preventing Further Escalation
In October 2025, before his meeting with Xi Jinping in Busan, Trump threatened significant tariffs on Chinese products. Before this year's May summit in Beijing, the U.S. president announced a 50% tariff increase on Chinese products. This time, there were no such threats. The shift in rhetoric could be linked to a prolonged war with Iran. The Americans are not interested in escalating the situation because they are in talks with China to extend the truce on access to Chinese rare earth metals. The Chinese government severely restricted exports of these raw materials last year in response to U.S. tariff hikes. The U.S. defense industry felt the impact acutely. It relaxed these restrictions in October 2025 at the Busan summit. This truce ends at the turn of the year, but the atmosphere at the summit in Washington suggested that it would be extended.
"Extending the truce buys Washington time, and time is crucial here. Each month of delay is a month the administration uses to build the map I described on Tuesday: the Greenland security agreement, the $10 billion Project Vault reserve that Glencore joined yesterday, the $400 million scandium mine in Australia, tungsten supplies from Korea, and refining capacity funded under the Defense Production Act. Even in the week leading up to the summit, when Trump was biting his tongue on tariffs, Washington quietly banned exports of tungsten scrap. The administration felt it couldn't negotiate a way out of this wedge, so it's trying to buy a way out of it — and the truce gives it the necessary peace of mind to do so,”* said Graham Summers, chief market strategist at Phoenix Capital Research.
Beijing has no desire to escalate the conflict either. The Chinese economy is slowing — GDP growth slowed from 5% in the first quarter to 4.3% in the second — and the conflict in the Middle East threatens China's energy security. The U.S. has succeeded in taking control of Venezuela's oil, which until now has been the main source of energy for the Chinese economy. The Americans, on the other hand, have left themselves the option of hitting China with new tariff hikes — as part of the Lindsey Graham Act (targeting countries that trade with Russia) and actions aimed at excluding Iran from world markets. However, they refrain from using this weapon. Similarly, China is not resorting to cutting off the U.S. from its rare earth metals.
"China and the U.S., as two major countries, stand to gain from cooperation and will both lose in confrontation. China and the U.S. do not need to avoid mentioning competition, but the competition should be a healthy one and should be kept within bounds. It should be a race of catching up with one another, not a wrestling match in which one either wins or loses," Xi said.
Points of Disagreement
Of course, there are still many unresolved issues between the superpowers. China continues to buy Iranian oil and is holding parts for F-35 fighter jets sent to Hong Kong under unexplained circumstances. It is also accused of supplying weapons and intelligence to Iran and the Yemeni Houthis. CNN reported Friday, citing four anonymous sources, that "Chinese groups" were providing Iran with data to enable targeted strikes on ships in the Persian Gulf and on U.S. bases in the Middle East. In July, Trump accused China of massive theft of U.S. voter data ahead of the 2020 election. During Xi Jinping's visit, however, he remained silent about all this. This, of course, provoked criticism from his opponents.
“In return for China breaking nearly every trade promise it has made, Trump is rolling out the red carpet for President Xi. There is no evidence that Trump is using this opportunity to push back on the Chinese government policies that hurt our workers and businesses, from forced labor to state subsidies. ... Donald Trump is giving away the store to China and leaving American families with the bill," said Democratic Sen. Ron Wyden of Oregon.
It seems, however, that neither Trump nor Xi has made any major concessions to the other. They only confirmed that they will not further escalate tensions. Only that. And yet, perhaps, quite a lot. In the face of a highly uncertain and dangerous global situation, such assurances should be regarded as a success.
*Editor's note: Although accurately translated, this quoted passage could not be independently verified.
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