US-China trade truce remains ‘fragile’ after Xi-Trump summit, analysts say

The US-China trade truce, extended by two months following a summit between Presidents Donald Trump and Xi Jinping, remains fragile according to analysts. Despite the extension, economic concessions were modest and unresolved issues persisted, according to Wendy Cutler, a vice-president at the Asia Society Policy Institute and former acting deputy US trade representative.

Cutler stated that the economic results reflected little urgency, adding that the deliverables, while important, were modest. The extension was prompted by a brief meeting between Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent prior to Xi's arrival in Washington. The agreement recommended tariff reductions on a list of non-sensitive goods worth US$30 billion, totaling US$60 billion.

However, Cutler noted that the levels were significantly lower than the overall trade between the two nations, with the majority of products falling into a sensitive basket. Kevin Rudd, Asia Society president, suggested that Beijing aimed to have diplomacy led by the two presidents to maintain stability leading up to the ruling Communist Party's 21st congress.

The summit also established a government-to-government dialogue on artificial intelligence, though cooperation remained uncertain. US President Trump expressed unwillingness to collaborate with Beijing on AI governance, stating it would hinder American companies' progress in the race for global AI supremacy. The leaders pledged to meet at the Asia-Pacific Economic Cooperation summit in Shenzhen and at the Group of 20 in Miami, marking four face-to-face meetings between the presidents in a single year.