Xi rolls into Trump summit with China's trade engine roaring — SkimNews
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- China's global trade surplus is on pace to top $1 trillion for a second consecutive year, with more than half of roughly 6,500 product categories sold to the US growing year-over-year despite Trump's tariff push — a phenomenon economists call 'China Shock 2.0.'
- Xi Jinping has little reason to rush concessions, analysts say — Trump is constrained by a costly Iran war, his lowest-ever approval ratings, and November midterms, while Xi wants time to 'fortify' China's domestic resilience.
- Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held preparatory talks in New York on Sep 20 aimed at modest agreements on AI guardrails and trade in non-sensitive products — a far cry from the breakthroughs Trump once vowed.
- The trade truce Trump and Xi struck in October 2025, which averted a major shock to the global economy, is up for potential extension at the Sep 24 meeting — the central question for the summit.
- Xi repeatedly pressed Trump on Taiwan arms sales and US resolve to defend the island during their May Beijing meeting, and Trump described a pending $14 billion Taiwan arms package as a 'negotiating chip' with Beijing.
- Washington wants Xi to pressure Iran to end the war dragging Trump's ratings, but Beijing is reportedly selling billions in goods to Iran through a sanctions-evasion scheme, and US secondary sanctions threats Bessent called an 'Economic D-Day' have not been wielded against China.
- Fudan University professor Wu Xinbo, who advises China's foreign ministry, said China-US ties have become 'more transactional,' with Beijing willing to accommodate US concerns on fentanyl, agriculture, or Boeing purchases in exchange for movement on Taiwan.
Why it matters: With China running a $1 trillion surplus and Trump distracted by the Iran war and midterm elections, the October 2025 trade truce's extension is the summit's central question — and on whose terms. Analysts say Xi will prioritize Taiwan concessions over fresh trade wins, while Trump has already called a $14 billion Taiwan arms package a 'negotiating chip.'
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