Xi rolls into Trump summit with China's trade engine roaring

In the days leading up to the impending summit between China's President Xi Jinping and the United States' President Donald Trump, the main topic of discussion appears to center around the potential extension of a trade truce signed last year. This truce, which aimed to avoid a major economic shock, has seen China's global trade surplus project to exceed $1 trillion for a second year in a row, despite challenges such as slowing domestic demand and a property crisis.

Meanwhile, Trump has struggled with declining approval ratings amid ongoing conflicts in Iran and Ukraine, as well as internal disputes with Europe over free speech. While Xi is not seeking tangible concessions, he wants to extend the gentleman's agreement to give China time to bolster itself. The Chinese delegation, which may include firms facing scrutiny, will accompany Xi to Washington.

Analysts suggest that Xi is in control of the situation, potentially unsettling US allies in Asia who anticipate Beijing to lobby for softer support for Taiwan.