The US and China agreed on a trade framework ahead of the leaders’ meeting. US Treasury Secretary Scott Bessent said Donald Trump and Xi Jinping have a “very successful framework” that they will discuss when they meet on Thursday.
The reality is this: The two countries are dependent on each other. China is dependent on the US market because it is one of the world’s largest. The US is dependent on China because it provides the world’s cheapest labor for American companies.
Trump and Xi Jinping are challenging each other, but both realize they cannot abandon each other. A positive outcome is certain from Thursday’s meeting! Both countries will be pleased. The US will increase tariffs slightly, but it will not impose heavy duties on Chinese products, similar to Canada’s. Infrastructure minerals are another problem for the US. Trump also knows he will have to purchase these minerals.
Epilogue: Great powers set the game for themselves and play for others.
