According to Nikkei Asia that has been closely covering this
event, at the first glance, the summit looked like a major geopolitical event.
In reality, however, the most consequential development had already taken place
before the two leaders sat down together.
Following talks with Chinese Vice Premier He Lifeng, US
Treasury Secretary Scott Bessent announced an agreement to extend the US-China
trade truce by another two months. Given the potential global economic consequences,
this announcement was more significant than anything that emerged from the
summit itself.
Like the Beijing meeting earlier this year, this week's
summit appeared to be largely ceremonial. According to a Xinhua readout, Xi
once again sought reassurance on the US position toward Taiwan. On artificial
intelligence, he called for the world's two largest economies to ensure that AI
remains under human control. Additional agreements may still emerge, but for
now the summit's tangible achievements remain unclear.
The ambiguity may have been exactly what Trump wanted. With
November's midterm elections approaching, the US president is eager to
demonstrate progress on the global stage. By holding a smooth summit with
America's foremost strategic rival and meeting Xi twice in just over four
months, Trump can argue that he has built a strong working relationship with
China's leader, regardless of whether the meetings produced breakthrough
agreements.
The international community, along with media organizations
watched the summit closely in anticipation of major news. Yet the biggest takeaway
may be what did not happen - no new confrontation, no dramatic breakthrough,
and no clear shift in the trajectory of US-China relations.
We will continue to follow developments closely and provide
in-depth coverage of US-China relations and what they mean for Asia and the
world.
Ahead of this week's Trump-Xi summit, a familiar Western
demand resurfaced: Let the yuan rise. As China's trade surplus builds toward
another record and estimates suggest its currency remains as much as 30%
undervalued, economists and policymakers are increasingly arguing that a
stronger yuan is needed to rebalance trade flows.
Europe, where manufacturers are under intense pressure from
Chinese rivals, has been particularly vocal about this point. While Beijing has
allowed some carefully managed yuan appreciation, Chinese policymakers fear a
rapid rise would squeeze already thin exporter margins, worsen unemployment and
deepen the deficiency in domestic demand.
