Chinese President Xi Jinping is visiting Washington this week for talks with US President Donald Trump. The discussions come amid ongoing trade tensions between the two nations, with expectations for progress on the trade war initiated by the US. The last meeting between the leaders in May did not produce significant outcomes.
Mikko Huotari, director of the Berlin-based think tank MERICS, stated, "The assumption in Beijing... is that China and the US will hold each other in check for the foreseeable future." He added that both leaders do not require immediate breakthroughs but rather time to navigate the strategic stalemate.
The potential for a deal could benefit Trump's Republican Party ahead of the midterm elections in November, though its certainty remains unclear. Trump remarked, "We will discuss everything" regarding Xi's visit.
The competition between the US and China extends to various sectors, particularly artificial intelligence (AI). The US has imposed restrictions on exporting high-performance chips to China, while China has limited the export of rare earth elements crucial for semiconductor production. Discussions on AI regulations are anticipated during the talks, with Xi advocating for international cooperation and Trump viewing regulation as a threat to US leadership.
US Treasury Secretary Scott Bessent mentioned that officials from both nations have discussed establishing a "notification mechanism" for sharing information on AI-related security incidents.
From a European perspective, both China and the US are viewed as challenging partners. European Commission President Ursula von der Leyen highlighted the second "China shock" in Europe, stemming from China's advancements in technology sectors like battery production and green energy. She expressed concerns about the impact on European industries and the need for sustainable solutions.
The EU is pursuing a transition to e-mobility while considering tariffs on low-cost electric vehicles from China, which are perceived as benefiting from government subsidies. Chinese representatives at the Düsseldorf economic dialogue indicated that China's economy is struggling, necessitating access to foreign markets.
Yang Xiepu, director of the Center for Sino-German Cooperation, noted the US's pressure on allies to impose restrictions on China in technology and security. Trump has threatened the EU with tariffs, creating instability within NATO. Canadian Prime Minister Mark Carney has emphasized the need for middle powers to collaborate more effectively in the face of US hegemony.
Carney's recent visit to China resulted in a strategic partnership agreement, and Canada has reduced tariffs on Chinese electric cars. Meanwhile, China is actively engaging with US allies, with Xi participating in various international summits.
Carney described this diplomatic approach as "variable geometry," suggesting that different alliances should be formed based on shared interests. He aims to ensure that middle powers are included in discussions rather than sidelined.