President Xi Jinping of China received a grand welcome during his recent visit to the United States, but the outcomes were less than he had hoped for. Despite the red carpet treatment from Donald Trump, key issues like trade, technology, and Taiwan remained unresolved.
The trade truce between the two nations, which paused a tit-for-tat tariff war, was only extended until January, far short of the year-long extension Beijing had sought. This limited extension leaves unresolved disputes over tariffs, China's dominance in rare earth supplies, and access to advanced US chips, pushing these contentious issues into yet another round of negotiations.
China's domestic economy faces significant challenges. While exports are at record levels, domestic consumption is lagging. Youth unemployment is high, and property prices have fallen in a nation where 80% of people own homes. With trade being a crucial pillar of economic growth, maintaining access to international markets is vital for China.
On the sensitive issue of Taiwan, Xi reiterated China's stance against US arms sales to the self-governing island, which China views as a red line. The US, however, is legally bound to supply Taiwan with defensive arms. In May, Xi cautioned Trump that mishandling this issue could lead to conflict. Trump delayed a $14 billion arms package for Taiwan, calling it a "very good negotiating chip" with Beijing. Xi likely pressed this point during their talks, emphasizing that reducing support for Taiwan could lower the risk of conflict.
Artificial intelligence (AI) was another topic of discussion, though concrete agreements remain unclear. The focus was on whether the leaders would agree to any safeguards following a call from Anthropic CEO Dario Amodei to slow AI development for safety reasons. A top safety researcher from the company had warned of a "greater than 10% chance" that AI could lead to human extinction. Xi emphasized the importance of keeping AI under human control, but Trump dismissed fears of AI as a "hoax".
In a gesture of goodwill, Xi announced the imminent arrival of pandas Ping Ping and Fu Shuang to Atlanta, resuming China's panda diplomacy. This announcement, along with the lavish welcome, including a state banquet featuring sesame crusted sea bass and braised baby bok choy, was well-received in China, enhancing Xi's image as an equal to Trump.
Despite the pageantry, the competition between the US and China remains intense. While Trump speaks of a "truly great friendship, " Xi's focus is on securing China's status as a superpower alongside the United States. The optics of the visit may have been a victory for Beijing, but the underlying issues persist.
