Middle Powers Navigate US-China Rivalry Amid Trade Talks — SkimNews
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- Xi Jinping and Donald Trump are set to meet in Washington amid hopes of progress on the U.S.-China trade war, though analysts note neither leader urgently needs a breakthrough, pointing to a strategic stalemate.
- U.S. and Chinese officials have discussed creating a 'notification mechanism' for AI security incidents, as both nations compete on artificial intelligence while imposing export controls on key technologies like chips and rare earth elements.
- European Commission President Ursula von der Leyen declared a second 'China shock' is underway in Europe, citing Chinese overcapacity in green tech and electric vehicles as a driver of deindustrialization in EU industrial regions.
- Canada, under Prime Minister Mark Carney, lowered tariffs on Chinese electric vehicles from 100% to 6.1% and set an annual quota of 49,000 vehicles, part of a 'variable geometry' diplomacy to avoid being 'on the menu' in great-power negotiations.
- Chinese business leaders at a Düsseldorf economic dialogue stated China's weak domestic economy forces firms to seek foreign markets, contradicting Beijing's official stance that it does not rely on export-driven growth for technological sectors.
Why it matters: The EU faces material pressure from Chinese EV overcapacity while caught between U.S. demands to align on tech restrictions and its own need to protect industrial competitiveness. Canada’s tariff shift shows middle powers are acting independently, accepting limited market access to China to preserve strategic autonomy, a move that could fragment Western alignment.
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