The Trump-Xi summit: Why Europe has so much at stake

Chinese President Xi Jinping arrives in the United States for a three-day summit with US President Donald Trump, and Europeans are closely watching the proceedings for any decisions that could directly affect their economic interests. The summit will focus on various issues, including trade, artificial intelligence, and rare earths.

The trade truce, which ended a trade war between the two nations, will be a key topic of discussion, as it expired on November 10. Both the US and China are expected to make announcements regarding agriculture and non-tariff barriers during this week's summit. US Trade Representative Jamie Jamieson Greer mentioned that they anticipate a $30 billion in goods mutual tariff reduction.

However, it is widely believed that Trump is aiming to secure a victory that he can leverage during the upcoming midterm elections, while China seeks to extend its industrial base. The European Union has been grappling with a trade deficit of €1 billion per day with China, leading to crucial negotiations beginning in June to reduce this deficit.

By the end of October, a tangible reduction is expected. The US has greater influence over securing rare earths imports, which are vital for EU industry. China holds a monopoly on the production and processing of these critical materials. Discussions on artificial intelligence are also expected, as both nations grapple with the risks and opportunities of this rapidly evolving technology.

Although China and the US have expressed concern over AI's potential threats, the US and China are actively involved in an intensifying technological competition. A proposal for an AI hotline between Washington and Beijing was discussed to address serious AI incidents that could threaten national security. Ultimately, the summit is expected to reaffirm the G20 nature of the global landscape.