US President Donald Trump came away from his meeting with Chinese leader Xi Jinping full of bombastic optimism.
He called it a great success and rated it 12 on a scale of 1 to 10. China was less enthusiastic. Beijing's initial statement sounds like an instruction manual, with Xi urging teams on both sides to follow up as soon as possible.
Trump is after a deal that could happen pretty soon, while Beijing appears to want to keep talking as it plays the long game.
Among other things, the US would lower tariffs on Chinese imports, and China would suspend controls on the export of rare earths - critical minerals essential for manufacturing smartphones, electric vehicles, and military equipment.
Although no formal deal has been reached yet, this breakthrough could stabilize a rocky relationship between the world's two largest economies and assuage global markets.
However, it's acknowledged that this is merely a temporary truce that doesn't address the core competitive dynamics present in US-China relations.
The US and China are going in different directions, says Kelly Ann Shaw, who was an economic advisor to Trump.
Shaw envisions a focus on managing the competing interests rather than resolving them, as both countries seek to preserve their own advantages amidst the turbulence.
Despite the challenges posed by crises in the Chinese economy—such as a real estate downturn and high youth unemployment—China has shown readiness to withstand the impacts of Trump's tariffs. Officials have made it clear that they will fight until the bitter end.
As the dynamics of trade relations evolve, it remains unclear if the ambitions of US leadership can align with China's strategic long-term goals. With tariffs still a point of contention, both parties may need to engage in repeated discussions to find common ground.
