The likelihood of a meeting between Trump and Xi – considered a key event to get trade negotiations started – remains low in the near term. Trump has repeatedly expressed interest in meeting with Xi to “make a deal.” But Xi is in no rush to look weak or begin negotiations.
China’s diplomatic outreach in Southeast Asia and the appointment of a new EU-focused trade negotiator underscore Beijing’s strategy to diversify trade partners and find new markets.
The Chinese government is also rolling out domestic initiatives to boost local consumption and absorb goods originally bound for the United States, while ramping up investments in AI, automation, and green technologies, alongside broader stimulus measures.
China has not fully deployed all its retaliatory or adaptation tools – such as consumer boycotts or a significant Renminbi devaluation – but early signs of both are beginning to emerge.
In January 2025, the second Trump administration was inaugurated. It didn’t take long for the world to learn what the ...
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