US and China extend trade truce but key disputes remain unresolved

Chinese President Xi Jinping recently held a summit with US leader Donald Trump to discuss major issues like trade, technology, and Taiwan, though Beijing did not get everything it wanted. The existing trade truce that paused a tariff war was extended by only a few months, lasting from November to January rather than the full year Beijing had hoped for. This leaves key disputes over tariffs, rare earth supplies, and advanced US chips pushed into future talks. At home, China's domestic economy faces severe challenges. While the nation sells record amounts of goods abroad, local consumers are spending less, youth unemployment remains very high, and property prices have fallen sharply in a country where 80 percent of people own their homes. Because trade helps support economic growth, Xi desperately needs to protect exports from harsh US tariffs. On the sensitive topic of Taiwan, Xi stated that US weapons sales to Taiwan are a red line. In May, Xi warned Trump that mishandling this issue could cause the two nations to collide or enter into conflict. Trump subsequently delayed a 14 billion dollar arms package for Taiwan, calling it a good negotiating chip. On Thursday, Xi repeated his hope that the US would oppose Taiwan independence, while Trump has yet to make a public response. The two leaders also talked about artificial intelligence and its safety, with Xi stressing the importance of keeping AI under human control, while Trump recently dismissed fears of human extinction from the technology as a hoax. Meanwhile, China's panda diplomacy is resuming, with Xi announcing that the pandas Ping Ping and Fu Shuang will arrive in Atlanta in just a few days following their initial announcement in April. Despite missing out on long-term concessions, Beijing scored a major win on optics through a lavish welcome, an airport greeting, and a state banquet featuring sesame crusted sea bass and braised baby bok choy. These displays helped cement Xi's image at home as Trump's equal, even as deep competition between the two superpowers continues.