Trump to Meet Xi Amid Speculation of Diplomatic Gains

US and China Leaders Set to Meet Amid Ongoing Trade Disruptions

The leaders of the United States and China are scheduled to meet this week, with experts suggesting that this is a favorable time for President Xi Jinping to negotiate. The US has been preoccupied with conflicts in the Middle East, while President Donald Trump’s approval rating has declined at home.

Since Trump took office last year, trade between the two countries has experienced significant disruptions. The US imposed tariffs on China, including rates as high as 145 percent, which led to Beijing’s retaliatory measures and a halt in the export of rare earth metals. These essential components are crucial for various industries, including cars and smartphones.

According to data from the Peterson Institute of International Economics (PIIE), US imports from China fell by over 25 percent, while exports to China declined by more than 25 percent. This represents substantial declines in trade between the two countries.

Experts estimate that without Trump’s trade wars, US exports to China would have been nearly 60 percent higher in 2025, or approximately $90 billion annually. However, businesses adapted to the increased tariffs by shifting their supply chains to other countries, such as Mexico, Vietnam, and Taiwan.

China’s trade surplus reached a high of nearly $1.2 trillion last year, as it diversified its business with other parts of the world to compensate for reduced trade with the US. Tensions between the two countries have persisted despite recent meetings, including a summit in South Korea in October.

President Trump’s visit to China marks his first trip since 2017 and comes ahead of planned talks scheduled for Thursday and Friday. Experts agree that China has an upper hand due to its stable energy needs and diversified business relationships. With the US busy with conflicts and domestic issues, such as declining approval ratings, experts believe this is a suitable time for Xi Jinping to negotiate.

A recent Reuters/Ipsos poll showed 34 percent of Americans approve of Trump’s performance in the White House, down from 36 percent in April. The US-Israel war on Iran has also contributed to rising energy prices and inflation.

Source: Al Jazeera