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Who Wins at the Xi-Trump Summit? China’s Use of Chips to Gain Key Concessions

习近平与特朗普在韩国釜山会晤后，习近平展现出自信，认为中国在贸易战中占据优势。通过利用稀土和大豆的筹码，习近平从美国获得了关税降低、港口费暂停和出口管制推迟等让步。双方同意延长限制关税的停战协议。习近平强调双方应避免相互报复的恶性循环，并表示贸易战的曲折应对双方有所启示。特朗普则宣称自己为美国农民和企业争取了胜利，并表示中国将采取更多行动阻止芬太尼流入美国。中国商务部宣布暂停稀土限制措施一年，特朗普则表示将减半对中国商品的关税。专家认为，中国在这场贸易战中占据上风，因为特朗普政府缺乏明确目标。会晤后，双方讨论了共同努力结束乌克兰战争，并计划在未来进行互访。然而，专家也指出，任何进展都可能因一方被解读为违反协议而轻易瓦解。

Trump’s Nuclear Test Threat May Escalate Sino-US Nuclear Tensions

Trump’s call for nuclear testing before his meeting with Chinese President Xi Jinping may have complicated the already tense nuclear rivalry between the U.S. and China. Trump’s statement, potentially triggered by Putin’s claim about a Russian nuclear-powered missile, could lead to a resumption of full-yield nuclear testing by China and Russia. This move would further strain the treaty that has limited nuclear testing for decades. Experts suggest Trump might have meant testing nuclear-capable missiles rather than detonating nuclear devices.

China, under Xi Jinping, has been rapidly expanding its nuclear arsenal, which currently stands at around 600 warheads, far fewer than the thousands held by the U.S. and Russia. China’s modernization efforts and Russia’s growing threat have prompted calls in Washington for faster modernization of U.S. nuclear forces. China’s development plan emphasizes strengthening strategic deterrence capabilities, including nuclear forces, and recent military parades have showcased its growing nuclear arsenal.

Satellite imagery indicates that China may be preparing facilities for underground nuclear tests, potentially signaling a readiness to respond if other countries resume testing. China conducted its last nuclear test in 1996 and has since relied on sub-critical tests. If Trump orders new nuclear tests, the U.S. would need about 18 months to prepare, while China and Russia could move faster.

Trump Meets Xi Jinping, Says China to Ease Rare Earth Restrictions

During a meeting in Busan, South Korea, U.S. President Trump and Chinese President Xi Jinping discussed trade issues. Trump announced that China would delay for a year the implementation of strict new controls on its supply of critical rare earth metals, potentially easing global supply chain pressures. Additionally, Trump said he would halve the 20% tariffs on Chinese goods, reducing the overall tariff rate from 57% to 47%. The meeting was overshadowed by Trump’s announcement that the U.S. would resume nuclear weapons testing after a 30-year hiatus. The Chinese government’s readout of the meeting did not mention any new trade agreements but emphasized the need to avoid a “vicious cycle of mutual retaliation.” China’s Commerce Ministry later confirmed a one-year extension to a trade truce agreed earlier in the year. Trump’s nuclear announcement did not provide details and was later clarified as unrelated to China. The U.S. had previously imposed 30% tariffs on Chinese imports, partly due to China’s shipments of chemicals used to make fentanyl.

“Before the Xi-Trump Meeting,” Chinese Officials Praise Two as “World-Class Leaders”

Chinese officials have praised both President Trump and Chinese leader Xi Jinping as “world-class leaders” ahead of their meeting in Busan, South Korea. This meeting is crucial for stabilizing a fragile trade truce between the two countries, which was established after four rounds of negotiations. Recent actions, including new Chinese restrictions on critical minerals and U.S. measures against Chinese companies, have threatened this truce.

Chinese officials have taken a tough stance on U.S. tariffs but have also tried to flatter Trump, encouraging him to follow his own path and not be swayed by more hawkish advisers. They have compared the leaders to conductors of two great orchestras trying to play together and helmsmen steering a giant ship through stormy waters.

The meeting aims to discuss how to pull back from a trade war that threatens the global economy. Key issues include tariff relief, deferring Chinese controls on rare earths, and addressing U.S. concerns about fentanyl chemicals and soybean purchases. Both leaders are confident in their positions and believe they have significant leverage over the other, aiming to avoid appearing weak to their domestic audiences.

Trump Considers Selling Advanced Chips to China, Raising Concerns Among U.S. Officials

President Trump’s remarks about discussing the sale of advanced AI chips, specifically Nvidia’s Blackwell chip, with Chinese President Xi Jinping during a summit in South Korea have raised concerns among U.S. officials. Trump’s comments suggest a potential policy shift that could allow the sale of these chips to China, which is currently banned due to national security risks. Critics argue that such a move could significantly impact the strategic competition between the U.S. and China, potentially altering the balance of power.

The potential sale of these chips could benefit Nvidia, which has emphasized the importance of maintaining access to the Chinese market. However, critics like Senator Chris Coons and former U.S. Ambassador to China R. Nicholas Burns warn that such a sale could be a strategic mistake, allowing China to enhance its military capabilities and technological self-sufficiency. Burns highlights that China’s military aims to surpass the U.S. and that Chinese laws require companies to share technology with the government, posing a significant risk.

The Trump administration is seeking a deal with China to stabilize relations and restart some commerce, including soybean purchases. Trump has indicated that he expects to lower U.S. tariffs on China and believes the meeting will have a positive outcome. However, the potential sale of advanced AI chips remains a contentious issue, with Nvidia and its CEO Jensen Huang advocating for the sale, arguing it would benefit both countries and accelerate U.S. leadership in AI. Huang’s influence on Trump has been noted, and he has been pushing for the sale of Blackwell chips to China.

Xi Jinping’s Veiled Warning to Countries: Do Not Align with the U.S. to Restrict Trade with China

At an Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, China’s President Xi Jinping courted countries for trade and investment while implicitly warning them not to join the United States in reducing global reliance on Chinese supply chains. Xi, the sole superpower leader present after President Trump’s departure, met with leaders from Japan, Canada, Australia, and South Korea, emphasizing China’s role as a manufacturing powerhouse and the world’s second-largest economy. He called for strengthening industrial supply chains and criticized Western attempts to shift factories away from China. Xi also indirectly criticized the U.S., urging APEC economies to oppose protectionism and unilateral bullying. However, China’s recent proposal for sweeping new export controls on rare earth minerals, which dominate 90% of the global supply, drew alarm from other countries. Despite this, Xi’s diplomatic efforts were bolstered by a truce with Trump, which included a suspension of new export controls on rare earths and a reduction in some U.S. tariffs on Chinese goods. Xi’s remarks were seen as a call for governments not to follow the U.S. in using tariffs and imposing export restrictions. The summit highlighted the delicate balance many regional countries must maintain between the demands of Washington and Beijing, often seeking to improve ties with both sides to maximize benefits.

China-Canada Leaders Meet for the First Time in Eight Years, Can Bilateral Relations Warm Up?

Canada’s relations with China have been strained due to mutual mistrust and acrimony, exacerbated by incidents such as the arrest of a Chinese telecommunications executive and the subsequent detention of two Canadians. Recent events, including a public humiliation of a former Canadian prime minister and tariff wars, have further deteriorated the relationship. Despite these tensions, there is cautious optimism surrounding the first formal meeting between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping since 2017. This meeting is seen as a potential turning point, driven by the unpredictable diplomacy and tariff campaigns of U.S. President Trump, which have forced Canada to seek support from China. However, expectations for the meeting are tempered by the deep-seated issues and the complex geopolitical landscape. China’s economic slowdown and the need for export-driven recovery may prompt a more cooperative stance from Xi, but significant hurdles remain, including human rights concerns and the potential for backlash from the U.S. Both countries could benefit economically and politically from improved relations, but the path forward is fraught with challenges.

Trump Makes Major Concession to Xi Jinping: Suspends Expansion of Export Controls

During a meeting in South Korea, President Trump and Chinese President Xi Jinping agreed to significant concessions, effectively rolling back recent trade tensions. Trump agreed to reverse some tariffs and pause new fees on Chinese ships, while China committed to suspending rare earths restrictions and resuming soybean purchases from the U.S. Notably, the U.S. agreed to pause for a year a rule that expanded restrictions on Chinese companies accessing advanced technology, a move seen as a significant precedent in trade negotiations. This concession is viewed as a breakthrough for China, which has long sought to negotiate over export controls. The U.S. also agreed to pause the expansion of the entity list to cover majority-owned subsidiaries for one year. The move is seen as a response to China’s control over critical minerals and its recent restrictions on rare earth exports, which have disrupted global supply chains. The U.S. had previously faced criticism for its aggressive tariff threats and lack of a coherent strategy, which some analysts believe gave China an opportunity to push for changes. The U.S. trade representative, Jamieson Greer, accused China of using various pretexts to exert economic control. Despite these concessions, some analysts and business groups welcome the return to stability in U.S.-China relations, which could encourage trade and growth.

Why is the West still worried as China suspends some rare earth export restrictions?

China has agreed to suspend some of its recent export controls on critical minerals for a year, following a meeting between President Trump and Chinese leader Xi Jinping. However, China has not committed to lifting earlier restrictions imposed in the spring and last winter, which continue to disrupt global supply chains. The October controls, described as a “bazooka” by U.S. Treasury Secretary Scott Bessent, included a halt on exporting technology or equipment that could help other countries develop their own rare earth mines and factories, except with permission from China’s commerce ministry.

The suspension of the October controls may indicate China’s realization of the significant damage these measures could cause to the industrial base in the West and its reputation as a reliable supplier. However, China has not publicly assured that it will back away from stringent export control rules imposed in April and December. These rules have led to shortages and price increases for critical minerals, affecting various industries, including automotive and military sectors.

European and American business leaders have expressed concerns about the stability of global supply chains due to these controls. The European Union Chamber of Commerce in China has stated that the export controls are putting the stability of global supply chains at stake. Factories relying on rare earth magnets for products like brakes and car seats have struggled to maintain operations due to limited shipments from China.

The West is investing heavily to reduce its dependence on Chinese rare earths. The U.S. has little capacity to quickly increase production of rare earth magnets, and it could take a decade to develop a completely independent supply chain. There are also concerns about whether China will allow exports of rare earth processing equipment to help the West set up its own supply chains, as many Chinese manufacturers have stopped exports following administrative guidance from Beijing.

American Rice, Meat Patties, and Thousand Island Dressing: What Trump Ate in Asia

During his Asia tour, President Donald Trump’s meals reflected a blend of local delicacies and his personal culinary preferences. In South Korea, his lunch included beef patties with ketchup and a salad with Thousand Island dressing, which was noted as a nod to his New York roots. In Malaysia, he had U.S. Angus beef sandwiches, and in Japan, he opted for American rice instead of the local variety. These menus were carefully crafted to showcase local cuisine while accommodating Trump’s well-documented love for fast food, well-done steaks, and familiar American dishes like Caesar salads and fries. The meals also included items like braised short ribs with Korean ingredients and desserts tailored to his preferences, such as citrus with gold-decorated brownies.

The diplomatic meals were orchestrated by protocol teams from both sides, often with specific instructions that limited the chefs’ decision-making power. Some food experts expressed a desire for more Korean ingredients in the meals, given the global popularity of Korean cuisine. However, the use of ingredients from the guest’s home country and catering to the leader’s palate were seen as expected and thoughtful gestures. The meals were designed to create an atmosphere of being treated with care and to facilitate successful trade negotiations.

China Releases “14th Five-Year Plan,” Emphasizing Ambition in Science and Technology and Advanced Manufacturing

China has released its “15th Five-Year Plan,” emphasizing a strategic focus on advanced manufacturing and technology to secure a global lead. This plan comes ahead of a meeting between Chinese President Xi Jinping and then-U.S. President Donald Trump, highlighting China’s ambition to compete with the U.S. and the West in these sectors. The plan aims to strengthen industrial and technological capabilities, despite concerns from trading partners about China’s expanding exports.

Xi Jinping, in a speech to the Central Committee, stressed the need to seize opportunities to consolidate strengths, overcome bottlenecks, and gain a strategic advantage in international competition. The plan includes “extraordinary measures” to achieve breakthroughs in key technologies such as semiconductors, high-end equipment, and advanced materials. This reflects China’s urgency in addressing geopolitical tensions and securing its economic and security interests.

The plan also addresses the need to expand domestic consumption and strengthen domestic demand as a primary driver of economic growth. However, China’s approach to boosting consumer spending differs from Western economic recommendations, focusing more on improving the quality of services rather than increasing welfare spending.

China’s strategy involves improving export control and security review mechanisms, enhancing the exploration and development of strategic mineral resources, and potentially using export controls to defend its interests. The plan suggests that China will continue to work on these measures even if a truce is reached with the U.S. on trade issues.

The Billionaire’s Beloved New York Super-Tall Building Becomes a “Dangerous Building,” Whose Fault Is It?

The 432 Park Avenue tower in New York, designed to be a jewel of Billionaires’ Row, has developed significant structural issues. Despite its striking white concrete facade, the building has experienced water seepage, elevator malfunctions, and structural swaying due to wind. Independent engineering experts and court documents reveal hundreds of cracks in the exterior, suggesting the building is overtaxed by wind and rain. If not addressed, potentially with a nine-figure renovation, the building could become uninhabitable or endanger pedestrians.

The issues stem from the building’s unique design and the challenges in creating a white concrete facade. The developers and architects insisted on a pure white exterior, which required a specialized concrete mix. This mix, however, was prone to cracking and other defects. Despite warnings from engineers and consultants, the developers proceeded with the project, rejecting more durable but less aesthetically pleasing solutions.

The building’s problems have led to legal disputes among developers, engineers, residents, and contractors. The condo board has filed lawsuits accusing the developers of selling defective units and covering up issues. The developers, in turn, have accused the board of mismanagement and failing to fulfill maintenance obligations. The residents are divided on how to address the problems, with some believing the issues are overblown and others concerned about the building’s management.

The tower’s structural integrity is a concern, with experts warning that continued stress could lead to chunks of concrete falling off and windows loosening. The building has been on the radar of the New York City Department of Buildings, which has not observed any unsafe conditions but has noted the worsening cracks. Recent estimates for repairs, including filling cracks, reinforcing columns, and adding a new cladding system, could cost over $160 million. The residents and developers remain at odds over the best course of action.

From the Opium War to the Trade War: How Lin Zexu Influenced Xi Jinping

Xi Jinping, China’s leader, has been influenced by the legacy of Lin Zexu, a 19th-century imperial commissioner who resisted British opium trade. Xi keeps a poem by Lin on his desk, reflecting his stance against foreign pressure and his determination to avoid negotiating from a position of weakness. Lin’s efforts to halt opium smuggling led to a military defeat for China, which is remembered as the start of a “century of humiliation.” Xi aims to erase this historical shame and has used Lin’s legacy to justify his strong stance against President Trump in their trade war. The historical context of the Opium War shapes Xi’s current strategies, including his refusal to bow to foreign pressure and his efforts to strengthen China’s position in global trade. Xi’s approach is seen as a response to the historical humiliation and a determination to ensure China’s interests are protected.

Trump Lost More Than the Trade War with China

Trump’s trade war with China has been a strategic failure, with the U.S. losing significant leverage. Trump’s initial tariffs misjudged China’s economic resilience and its control over rare earth minerals, which are crucial for modern industry. China responded by weaponizing its rare earth exports, leaving the U.S. vulnerable. The upcoming trade deal is likely to favor China, with the U.S. cutting tariffs and China resuming soybean purchases. This outcome reflects a weakened U.S. position, as China now holds significant leverage over the U.S. economy. Trump’s concessions, including easing export rules and allowing TikTok to operate in the U.S., further highlight his weakened stance. China’s control over rare earths poses a long-term threat, as the U.S. lacks alternative sources and would need years to develop its own capabilities. This situation could lead to further U.S. concessions on security and regional issues, potentially undermining U.S. influence in Asia. The trade war has not only resulted in economic losses but also a significant loss of global credibility and influence for the U.S.

From Xi Jinping to Trump, Strongman Rule Makes the World More Dangerous

The article discusses the rise of strongman leaders globally, including Donald Trump and Xi Jinping, and the potential consequences of their leadership styles. These leaders, unchecked by domestic or institutional constraints, can lead to increased risk-taking, volatility, and potential for miscalculation and conflict. Examples include Trump’s trade policies and Xi’s military actions in the South China Sea and Taiwan Strait. The lack of accountability and domestic constraints can also undermine global security and economic stability. The article highlights how strongman rule can lead to economic disruption, wealth concentration among elites, and suppression of private investment. Additionally, repression and attacks on independent institutions are common under such regimes. The article concludes by noting that the era of strongman rule is returning, potentially leading to increased unpredictability and volatility in global politics.

Trump Praises Taiwan’s Early Harvest, Calls Japan and U.S. “Strongest Allies”

Trump and Japan’s new Prime Minister Sanae Takaichi met in Japan, emphasizing their strong alliance and personal friendship. They signed two agreements, one declaring a “new golden age” for the US-Japan alliance and another to cooperate on rare earth metals. Trump praised Takaichi for becoming Japan’s first female prime minister and promised US support. However, specific details on Japan’s $550 billion investment in the US, a key part of their trade deal, were not discussed. Both leaders focused on their shared relationship with former Japanese Prime Minister Shinzo Abe, who was assassinated in 2022. Trump also approved the supply of missiles for Japanese F-35 jets and mentioned Toyota’s planned investment in US plants. The leaders agreed to work together on shipbuilding but did not announce specific plans for Japan’s investment in the US. The meeting highlighted the strong personal rapport between Trump and Takaichi, with both leaders emphasizing their commitment to countering Chinese aggression in the Indo-Pacific region.

Trump’s Trade Deal with China: Attempting to Solve a Crisis of His Own Making

The article discusses the potential trade deal between the United States and China, focusing on the negotiations and the potential outcomes. Key points include:

America’s Second Failure in Vietnam? Russia, China, and North Korea’s Influence Grows

Vietnam, once seen as a potential ally for the U.S., has increasingly turned to Russia, North Korea, and China for military and economic partnerships. Despite initial optimism from American officials about Vietnam’s potential purchase of C-130 military transport planes, the deal never materialized. Instead, Vietnam has intensified its military cooperation with Russia, acquiring complex air-defense systems, high-tech submarine upgrades, and new aircraft. This shift has been facilitated by Russia’s ability to circumvent U.S. sanctions and Vietnam’s growing frustration with U.S. policies, including tariffs and trade uncertainties.

Vietnam’s leaders have expressed dissatisfaction with the U.S., citing issues like the elimination of aid for clean energy and HIV prevention, fluctuating tariffs, and the Trump family’s golf development project near Hanoi. These factors have led to a resurgence of distrust towards the U.S. and a renewed reliance on Russia. The relationship between Russia and Vietnam has been bolstered by high-level meetings and undisclosed military purchases, with Russia becoming bolder in its dealings despite U.S. sanctions.

The U.S. has been concerned about losing Vietnam as a partner, especially as President Trump’s policies are seen as pushing Vietnam further away. This has led to growing alarm in the U.S. and other regional democracies about the potential for Vietnam to align more closely with China, Russia, or North Korea, which could reshape the security landscape in Asia. Vietnam’s actions, including accelerating plans for cross-border railway projects with China and receiving high-level delegations from Russia and North Korea, have raised concerns about its future alignment.

Despite these concerns, Vietnam insists that its relationship with the U.S. remains strong. However, the U.S. and other regional powers are increasingly scrutinizing Vietnam’s choices, with some officials hoping that upcoming discussions can revive the relationship or at least prevent further decline. Vietnam’s military diversification efforts, including the development of its own weapons and modest defense deals with Israel and India, are seen as part of a broader strategy to maintain its independence and balance between major powers.

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