At their US summit, Donald Trump and Xi Jinping extended the tariff truce only to January, short of Beijing’s hoped-for year. Tariff, rare-earth and US chip disputes were pushed to further talks, and it was unclear whether they agreed on AI safeguards.
Xi again made clear that US arms sales to Taiwan are a red line for China and urged Washington to oppose Taiwan independence. Trump delayed approval of a $14bn arms package for Taiwan in May, calling it a negotiating chip, but had not publicly responded to Xi’s latest remarks. US law requires Washington to provide the self-governing island with the means to defend itself.
China’s economy is under pressure: consumers are holding back, youth unemployment remains high and property prices have slumped in a country where 80% of people own homes. The lavish airport welcome and state banquet were welcomed by viewers in China and may have helped cement Xi’s image at home as Trump’s equal.
