China's President Xi says Beijing and US should seek new ways for major countries to coexist

Chinese President Xi Jinping visited Washington, emphasizing the need for China and the United States to seek new methods of coexistence and partnership, rather than rivalry, according to the Financial Times. The two nations have agreed to support each other in hosting the APEC Economic Leaders meeting and the G20 Summit in 2026.

Both China and the U.S. stand to gain from cooperation, while confrontation would lead to mutual losses. They believe a healthy competition, keeping within reasonable bounds, should be the primary goal. The pair reached broad agreement on numerous issues and engaged in a candid and thorough exchange with U.S. President Donald Trump.

Following trade talks between the two countries, there is optimism that the new arrangement will bring benefits. The ongoing trade war between the U.S. and China, which began in 2018, resulted from President Trump imposing tariffs on China over unfair trade practices and intellectual property theft. China retaliated by imposing tariffs on various U.S. goods.

The tensions escalated until both nations signed the US-China Phase One trade deal in January 2020, which aimed to restore stability and trust, but the Coronavirus pandemic diverted attention from the conflict. President Joe Biden, who succeeded Trump, maintained the tariffs and added additional levies. Trump's return to the White House as the 47th U.S. President has reignited tensions between the two countries.

During the 2024 election campaign, Trump pledged to impose 60% tariffs on China upon his return, which he did on January 20, 2025. The US-China trade war is expected to resume, potentially affecting the global economic landscape, supply chains, and investment. Meanwhile, the Australian Dollar reached a low of 0.7012 against the US Dollar on the day, influenced by elevated US yields, oil prices, and inflation pressures.