Stories
Xi-Trump Meet: Is the US Paying Too High a Price for 'Stability'?
- •President Trump personally welcomed Xi Jinping, a rare gesture not seen since 1962, highlighting the significance of the visit.
- •The US-China relationship appears to be largely dictated by China, with Xi setting the pace and outlook, holding more leverage than before.
- •Concessions made by both sides seem lopsided, with the US making more significant compromises, including halving fentanyl tariffs and suspending an arms package for Taiwan.
- •China's main leverage lies in its control over supply chains, demonstrated by reduced rare earth magnet shipments even during a truce.
- •Despite China's gains, the US still holds cards, including its lead in advanced technology and the potential for further tariffs, but faces a dilemma regarding the true cost of this 'stability'.
Key Questions Answered
During the state visit, the US made several key concessions to China, including halving the fentanyl tariff from 20% to 10% and suspending both the Affiliates Rule and port fees. Additionally, chip sales provisions were upgraded to the H200, and a roughly $14 billion arms package for Taiwan has been kept on hold since May.
China utilized its dominant supply chain leverage by dialing shipments up or down to influence ties, such as shipping only 512 metric tons of rare earth magnets to the US in August—a 21% decrease from July. Furthermore, temporary pauses on US-specific bans for critical minerals like gallium, germanium, and antimony were set to expire on November 27.
The US and Chinese leaders agreed to adopt the term 'super intelligence' instead of 'artificial intelligence' and established an SI Dialogue with its first meeting scheduled for November. However, official Chinese accounts from Xinhua continued to reference AI and its misuse and abuse, showing a divergence in terminology.
