Trump-Xi meeting closer to truce than durable peace, China seen looking stronger

After months of threats, chest-thumping and uncertainty, the world breathed a collective sigh of relief on Thursday after a meeting between US President Donald Trump and Chinese President Xi Jinping teased at least temporary relief on a host of bilateral trade irritants.

Even as Trump gained headlines and short-term “wins” involving soy purchases and fentanyl ingredients, analysts said Xi gained ground in some more fundamental areas – including recognition of its rare-earth leverage and some breathing room to pursue tech supremacy – that could significantly improve China’s competitive position further out.

US Treasury Secretary Scott Bessent announced that China had agreed to buy 12 million metric tons (13.28 million tons) of soybeans this year and at least 25 million annually through 2028, a key issue for anxious US farmers after Beijing stopped buying.

Bessent also said on Fox News that China had approved the transfer agreement for the short video app TikTok. But he provided no details other than to add that he expected the deal to move forward in the near future.

Trump said on Thursday on Air Force One, with his usual hyperbole, that the two leaders had “agreed to almost everything” and described the summit as “amazing”.

Analysts cautioned, however, that deeply entrenched problems in the relationship and Trump’s mercurial negotiating style could see the easing of trade tensions reversed in short order.

  

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