Trump used to slam China. Here’s why he’s now rolling out the red carpet for Xi

President Donald Trump, a decade ago, strongly criticized China for its impact on the U.S. economy, claiming it had decimated American factories and stifled the middle class. This harsh rhetoric contributed to Trump winning the presidency. However, Trump has recently adopted a more amiable tone towards Chinese President Xi Jinping, the political rival Trump will honor with a state dinner on Thursday.

"He's a great gentleman; we get along great," Trump remarked this month, adding, "We have a very good trading relationship." In contrast to his earlier stance, Trump has shown leniency towards China on various issues. He downplayed China's provision of satellite imagery to Iran, stating, "I think he's behaved reasonably well." After accusing Beijing of accessing U.S. voter files in 2020, Trump expressed hesitation in retaliating, remarking, "I think China is maybe a little bit different today than it was then."

As China and the United States vie for global leadership, with some of America's traditional allies reevaluating their strategies, China has expanded its presence in manufacturing and ventured into emerging technologies like artificial intelligence and electric vehicles, posing risks to the economies of nations such as the U.S., Germany, Italy, France, South Korea, and Japan.

Trump initially tried to counteract China's influence through tariffs, but this approach proved ineffective. Unable to alter China's behavior, Trump has resorted to showing him hospitality. He visited Beijing in May, and the two leaders might meet again at international summits this year. Despite Trump's assertion that the U.S. is currently ahead of China, his efforts to pressure China through tariffs failed.

China has a near-monopoly on rare earths crucial for electronics, which it used to secure a trade truce with Trump. Trump has downplayed China's dominance in rare earths, claiming the U.S. remains superior. Trump has also undermined alliances that once pressured China, mocking French President Emmanuel Macron and pursuing a potentially adversarial trade dispute with Canada, a longstanding ally.

According to Kovrig, a senior adviser at the International Crisis Group, Trump's approach to China has shifted due to the failure of his initial tariff strategy. Xi and Trump engaged in a contest of leverage, with Xi ultimately emerging victorious. As a result, Trump has helped Xi paint China as a more stable and responsible power, attracting Western leaders to Beijing and fostering improved relations.

This has led to some symbolic wins for Trump, such as reciprocal state visits with Democratic President Joe Biden and a decline in the trade imbalance with China. However, it remains uncertain whether Thursday's visit will yield tangible policy outcomes. Both China and the U.S. are leveraging their trade truce to retreat, with China bolstering its military and AI capabilities despite limited access to advanced computer chips.

Trump is also banking on America's lead in AI development, despite voter resistance and safety concerns from leading AI companies. However, there are accusations that China trains its AI companies on U.S. models, a matter of concern for Trump and the economy if AI becomes the key to global dominance. Still, Attorney General Todd Blanche told reporters that it's "unfair to label China as a bad actor" on AI. Trump is expected to discuss the issue with Xi, as they share a cordial relationship.