With all that is happening in the Middle East, let’s not forget that there is also an ongoing trade war between the US and the rest of the world. The Supreme Court shooting down Trump’s reciprocal tariffs has changed the landscape here dramatically. And that is making for a bit of an awkward setting ahead of Trump’s visit to Beijing at the end of this month.
The latest news via Bloomberg is saying that US and China trade negotiators will be scheduling to meet some time in mid-March. That suggests that the Trump-Xi summit will be moving forward despite the situation in the Middle East.
Of note, US Treasury secretary Scott Bessent and China vice premier He Lifeng are reported to meet in Paris at the end of next week. The two are expected to discuss potential business deals tied to the Trump-Xi summit. However, the report notes that the timing and location of the meeting could still change.
The reported business deals that could be discussed may include possible Chinese purchases of Boeing aircrafts, buying of US soybeans, and the future of fentanyl tariffs that were taken down by the Supreme Court.
The way that I’m interpreting this is that:
- Both sides will want to keep separate economic talks and geopolitical issues
- Trump already agreed to visit Beijing before the Supreme Court decision, so he has to save face and still go
- China is more than happy with the current predicament and will gladly put up a facade to appease Trump
- As has been the case before, China wants to play the long game and ride out Trump’s presidential term
- Beijing might agree to economic deals during the summit but may not deliver on them as has been the case before
In other words, it seems like we’re all lined up for another show of theatrics. Both sides will boast about taking wins but in the end, don’t expect any major changes to the status quo from now and after the Trump-Xi summit.
Leave a Reply