Trade Talks on a Global Tightrope: Trump and Xi's Strategic Balancing Act

As President Donald Trump prepares for talks with China's leader Xi Jinping during the Asia-Pacific Economic Cooperation summit in South Korea, the stakes are high. They've signaled a potential return to a fragile trade war truce amidst persisting economic tensions and strategic competition.

This meeting, their first since Trump's initial term, comes after Beijing's proposed curbs on rare-earth exports—a move pivotal for high-tech sectors. Trump threatened retaliatory tariffs, escalating concerns over the global economy. Yet, U.S. officials indicate an expected temporary delay in China's rare-earth controls.

Trump expresses optimism for the summit, aiming to minimize U.S. tariffs on Chinese goods in exchange for Beijing's concessions on fentanyl chemical flows. However, broader strategic tensions, including those surrounding Taiwan, remain unresolved, underscoring the fragile state of U.S.-China relations.