Politics & Policy

US President Donald Trump and Chinese President Xi Jinping are preparing for a summit in Washington DC on September 24, following final preparatory talks led by Vice Premier He Lifeng and Treasury Secretary Scott Bessent. The meeting aims to stabilize a fragile trade détente established at the 2025 Busan truce, which is due to expire in November. Key agenda items include extending the pause on major tariff escalations, defining a $30 billion basket of non-sensitive goods for a new Board of Trade, and establishing guardrails for critical mineral supply chains. Despite diplomatic preparations, underlying tensions persist as both nations engage in tit-for-tat measures. China recently saw a 25% year-on-year surge in exports, driven largely by global AI demand, while the US has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, imposing 100% tariffs on countries purchasing Russian energy. Beijing has rejected these sanctions as long-arm jurisdiction, maintaining that normal trade cooperation should remain free from third-party interference. Technology competition remains a central challenge, with discussions focused on creating a formal US-China AI dialogue and notification mechanisms for cyber incidents. While some US industry leaders call for pacing AI development, President Trump opposes slowing technological progress. Simultaneously, Chinese regulations issued since March have tightened state oversight over outbound investments and supply chain auditing, raising concerns among US companies about operational risks and compliance with foreign sanctions