‘Now this is Xi’s world’: China’s trade engine roars on as Jinping heads to Trump summit

Following the leaders of the two global superpowers' last meeting four months ago, China's trade relations with the world have surged while Donald Trump has experienced a decline in approval ratings. This shift has lowered expectations for their upcoming summit in Washington, with analysts suggesting Xi Jinping is not eager to make concessions, and Trump constrained by a costly war with Iran.

The primary focus of the September 24 meeting is whether the leaders will signal an extension to the trade truce, which averted a major economic shock last year. China's trade surplus is projected to exceed $1 trillion for a second consecutive year, but US efforts to curb cheap Chinese products have been successful.

During preparatory talks in New York, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discussed potential agreements on AI guardrails and trade in non-sensitive products, a far cry from Trump's previous tariff-driven approach to address the trade imbalance. China has faced domestic challenges, but its export sector continues to thrive, a trend labeled "China Shock 2.0."

Meanwhile, China's business leaders, including some facing US regulatory scrutiny, are set to accompany Xi to Washington, while US officials caution against expecting major breakthroughs, given China's current focus on domestic resilience. If Xi prioritizes addressing US concerns on Taiwan, it could impact relations with US allies in Asia.

Despite Beijing's alleged involvement in evading sanctions on Iran, Trump's administration seems content to maintain stability in the relationship for now, as it allows him to concentrate on pressing matters like the Iran war.