Xi and Trump Reach Temporary Truce as China Pursues Long-Term Strategy

By THE SOURCE NEWS GH

The highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping has produced a tentative pause in trade tensions, marking what both sides call progress but stopping short of a permanent resolution. The talks, held at a South Korean air base, were described by Trump as a “great success,” while Beijing characterized the encounter as a “good start” requiring continued negotiations.

Careful Diplomacy, Different Tactics

For Trump, the meeting was an opportunity to secure what he called a “12 out of 10” outcome—an optimistic rating that contrasted sharply with China’s measured tone. Analysts say the meeting symbolized a temporary trade truce rather than a strategic breakthrough.

China agreed to suspend export controls on rare earth minerals, materials essential for producing smartphones, electric vehicles, and advanced defense systems. In return, the U.S. signaled a willingness to lower certain tariffs on Chinese imports—a move expected to calm global markets. However, both sides acknowledged that a formal trade deal remains out of reach for now.

China’s Strategic Patience

Political analysts note that China’s approach reflects a long-term strategy aimed at outlasting short-term political cycles in the United States. As Keyu Jin, author of The New China Playbook, explained: “China’s main principle is struggle, but don’t break. It has escalated to de-escalate—a very new tactic.”

Beijing has demonstrated resilience amid economic pressures, including a slowing real estate market, high youth unemployment, and weak consumer spending. Despite these challenges, Xi has leveraged China’s dominance in the rare earth supply chain, where the country processes about 90% of global production.

“The nuance often missed in the rare earths debate,” said Jason Bedford, a macroeconomics expert, “is that China controls the most strategic part of the supply chain—the heavy rare earths used in advanced defense systems. That advantage is far harder to dislodge.”

This leverage gave Xi a crucial bargaining chip. It also signaled Beijing’s readiness to absorb the pain of tariffs rather than concede to U.S. pressure.

Trade and Political Pressures

Trump, meanwhile, faces mounting domestic pressure to deliver results for U.S. farmers and manufacturers hurt by the years-long trade dispute. Beijing’s earlier decision to halt soybean imports targeted Trump’s political base in rural America. Now, reports suggest China has resumed purchases of U.S. soybeans—an apparent concession welcomed by U.S. markets.

Despite these developments, many of the core tariffs imposed during the earlier trade war remain in place. As Kelly Ann Shaw, a former economic adviser to Trump, told the BBC, “The U.S. and China are going in different directions. It’s about managing the breakup in a way that limits damage and preserves each side’s interests.”

The Optics of Power

Xi’s understated diplomacy contrasted with Trump’s energetic, impromptu style. The setting—an air base meeting rather than a grand state ceremony—symbolized Beijing’s restrained yet confident posture. Observers noted that Xi maintained composure as Trump leaned in for informal exchanges, reinforcing China’s preference for control and precision in diplomatic theater.

Trump’s team, on the other hand, faced a stronger, more prepared China than during his first term. Over the past four years, Beijing has diversified trade ties and reduced reliance on the U.S.; exports to America have fallen from nearly 20% to around 11% of China’s total shipments.

Global and Ghanaian Implications

The tentative truce between Washington and Beijing carries global significance. For Ghana and other African economies, easing U.S.-China tensions could stabilize commodity prices, including cocoa, gold, and critical minerals tied to global supply chains.

Trade experts in Accra say a reduction in economic friction between the superpowers could open new opportunities for African trade partnerships and investment in renewable energy and technology sectors. As one Ghanaian economist observed, “When the world’s two largest economies cooperate, emerging markets breathe easier.”

What Lies Ahead

While the meeting offered relief to global investors, few expect a lasting solution soon. Negotiators from both nations will continue to refine terms in the coming months. Trump has suggested that a formal trade deal could be signed “pretty soon,” though analysts caution that political and ideological differences remain deep.

“China wants to negotiate from a position of strength but won’t break the relationship,” said Keyu Jin. “That is in nobody’s interest, including China’s.”

Still, experts predict more volatility. “Over the medium to long term, I would not be surprised to see renewed destabilization in the next three to six months,” warned Kelly Ann Shaw.

For now, the world’s two largest economies have paused their economic conflict, but as both nations pursue divergent goals, this temporary truce may prove to be only an intermission in a much longer geopolitical contest.