Trump-Xi Truce Appears Elusive as China Prepares to Dig In

Key Points

  • President Trump has repeatedly expressed interest in talks with Xi Jinping, but prospects remain dim as both countries escalate tariffs.
  • China has matched U.S. tariff hikes to 125% but vows not to increase further, focusing instead on other countermeasures.
  • Beijing seeks dialogue on equal terms, while Trump's inconsistent demands complicate negotiations.
  • Both nations are preparing for prolonged economic pressure, with China looking to strengthen ties with other partners and boost domestic resilience.

Summary

The ongoing trade war between the U.S. and China shows no signs of abating, with President Trump repeatedly suggesting talks with his Chinese counterpart, Xi Jinping, yet the likelihood of negotiations remains low. Both countries have escalated tariffs to 125%, with China stating it will not match any further U.S. increases, instead focusing on unspecified retaliatory measures. The lack of consistent demands from the Trump administration has made negotiations challenging, as noted by experts like Christopher Beddor from Gavekal Dragonomics. Despite Trump's optimistic public statements about his relationship with Xi, the economic pressure on both nations continues to mount. China is not only preparing for sustained economic warfare but also seeking to enhance its global trade relations and domestic economic resilience. Meanwhile, the U.S. has shown a willingness to negotiate with other countries, offering tariff pauses, but has not extended the same to China, further complicating the situation. The standoff has led some to describe the U.S.-China relationship as a "negative sum game," where both countries aim to minimize their own losses while maximizing those of the other.

yahoo
April 11, 2025
Stocks
Read article

Related news