Xi jinping Signals a Shift in US-China Relations, Asserting ChinaS Growing Power
Recent developments suggest a change in dynamics between the United States and China, with Chinese President xi Jinping appearing more assertive in challenging US influence.Initial anxieties on Wall Street and in government bond trading, triggered by escalating trade tensions, have begun to ease following an agreement between the two nations to lower tariffs and Beijing’s partial easing of export restrictions.
According to high-ranking Chinese sources cited by the Wall Street Journal, Xi Jinping believes China now holds a position of strength and anticipates the US adapting to its increasing global power. This conviction appears to be driving a willingness to utilize China’s leverage. On October 9th, Beijing announced expanded restrictions on rare earth exports, framing the move as a response to new US limitations on the sale of microchips to Chinese companies.
This action was a calculated risk by Xi, possibly jeopardizing a planned summit with US President Donald Trump in South Korea. Trump had initially threatened to cancel the meeting and impose further tariffs. Though, negotiations led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng resulted in an agreement in principle.
The upcoming summit is now expected to yield several concessions. The US is anticipated to refrain from implementing new 100% tariffs, while China is expected to delay its new export restrictions for a year.A key demand from Trump – the sale of the chinese-owned TikTok – is also likely to be addressed. Sources indicate Xi Jinping does not prioritize TikTok, reportedly dismissing it as ”spiritual opium.”
furthermore, a deal is reportedly in the works where China will pledge to intensify efforts to curb the export of chemicals used in the production of Fentanyl, a drug responsible for a significant number of deaths in the US. In exchange, the US is expected to lower tariffs on Chinese goods.
The issue of Taiwan is also expected to be a central point of discussion. Xi Jinping aims to secure a weakening of US support for the island and a public declaration from the US opposing Taiwanese independence. Currently, the US maintains a deliberately ambiguous stance, stating it ”does not support independence for Taiwan.”
Should the summit prove accomplished, a visit by Donald Trump to China early next year, potentially followed by a reciprocal visit from Xi Jinping to the United States, is anticipated.
The potential agreement could restore US-China relations to a state similar to that existing before Trump’s initial imposition of high tariffs. Though, the landscape has shifted. Xi Jinping has demonstrated a willingness to assert China’s position, and this strategy has largely yielded the desired results.
The situation has highlighted vulnerabilities within the US, especially its reliance on rare earth metals. While efforts to reduce this dependence are underway, it will require significant time. Despite the potential for a temporary easing of tensions, the relationship between the two nations is expected to remain competitive for the foreseeable future, potentially defining the geopolitical landscape of the 21st century.
