Former President Donald Trump recently expressed optimism about his upcoming meeting with Chinese President Xi Jinping, scheduled for later this month during the Asia Pacific Economic Cooperation (APEC) summit. Trump boasts about his terrific rapport with Xi. He thinks they can strike a hell of a deal that works for both countries.
In his brief statement prior to the meeting, Trump emphasized the importance of the meeting. He argued that it would address longstanding trade challenges between the two countries. He stated, “I want to be good to China. I love my relationship with President Xi.” This attitude demonstrates a heretical level of strategy. Tensions have been escalating due to US-China trade tariffs, and most recently due to China’s new export controls on rare earth products.
The former president underscored the United States’ military superiority over China, declaring that “we have the best equipment. We have the best of everything, and nobody’s going to mess with that.” Trump’s remarks come amid concerns regarding China’s claims over Taiwan, which the country insists it will seize by force if necessary. He dismissed worries about a potential attack on Taiwan, asserting, “I don’t see anything happening. We have a very good trade relationship.”
Trump’s gambit was to use a permanent aggressive negotiation strategy. He is threatening to slap a new 100% tariff on Chinese products if no deal is struck by November 1. He reiterated that China has already paid the U.S. “hundreds of billions of dollars worth of money for tariffs,” adding that the total tariff rate on Chinese goods currently stands between 55% to 57%.
Trump’s comments follow recent developments in China’s trade leadership. Li Chenggang, China’s longstanding WTO ambassador and top trade negotiator, has been replaced. He has been replaced by Li Yongjie, who most recently was deputy international trade representative. This new direction is indicative of China taking a harder line, combative approach to the trade negotiations. It’s a sign that China is still going hardball in negotiations with the U.S.
China further escalated the situation by tightening its export controls on rare earth products. These minerals are critical inputs to the production of smartphones, fighter jets, and electric vehicles. This move has heightened tensions, prompting Trump to remark on his ability to restrict China’s access to critical components, stating, “They can’t get parts for their airplanes. We build their airplanes.”
Though infighting continues, Trump is still optimistic about reaching a middle ground. “Now, they’re treating us with great respect,” he commented regarding the current state of U.S.-China relations. His confidence implies an assumption that diplomatic engagement can produce attractive results.
Experts caution that the failure of Trump and Xi to reach an agreement could further destabilize relations between the two superpowers and impact the global economy. Lin Jian, an economic analyst, remarked, “Threatening high tariffs is not the right way to deal with China.” Such sentiments underscore the difficulty of having to walk a tightrope as the U.S.-China bilateral trade relations continue to worsen.
With the APEC summit coming up next month, all eyes will be on Trump and Xi. Read on for the important matters they will be addressing in this high-stakes meeting. What comes out of their discussions might determine how the two countries – increasingly at odds over a variety of issues – stand in the future.
