Latest news with #China-focused
Bangkok Post
2 hours ago
- Business
- Bangkok Post
Jitta Wealth unveils mid-year investment strategy
Jitta Wealth Asset Management has unveiled its mid-year investment strategy for 2025, spotlighting the power of artificial intelligence (AI) in navigating global market volatility. According to Trawut Luangsomboon, chief executive and and co-founder of Jitta Wealth, while geopolitical tensions have slightly subsided, inflationary pressure and interest rate uncertainty continue to pose significant market risks in the second half of 2025. To address these challenges, Jitta Wealth recommends an 80:20 split between Core (global exchange-traded funds [ETFs]) and Satellite (Jitta Ranking Alpha) allocations which strike a balance between stability and the potential for enhanced returns through strategic market targeting. Jitta Wealth's Core portfolio utilises global ETFs that invest in high-quality equities and bonds worldwide. Meanwhile, the Satellite portion employs Alpha AI, Jitta's proprietary country-selection algorithm, to pinpoint the most promising stock markets at the right time. This 80:20 strategy was stress-tested early this year, resulting in limited drawdowns and a return to positive performance by mid-year. Despite US equities hitting new highs, Mr Trawut cautioned investors to watch rising US debt levels and diminishing demand for US treasuries. In contrast, China continues to demonstrate strong fundamentals. Though consumer sentiment remains cautious, China's GDP consistently grew above 5.5% from 2021 to 2024, nearly 2 percentage points higher than the global average -- highlighting its economic resilience. According to Jitta Market Prediction, the firm's AI-powered analytics platform, the attractiveness of US equities is waning. The ratio of undervalued to overvalued stocks in the US dropped to 0.61 times in July 2025, down from 0.72 times at year-end 2024. In contrast, China's ratio surged to 15.6 times, up from 9 times over the same period -- indicating a significantly more favourable valuation landscape. "The global economy is increasingly shaped by US–China dynamics. While it remains uncertain who will emerge as the global leader in the next decade, both markets will remain key growth drivers," Mr Trawut said. "Our AI continues to flag China as a high-potential investment market in the second half of 2025." So far this year, China-focused themes have outperformed, with: Healthcare, +29.3%; Clean Energy, +26.1%; Broad China Equity, +23.1%; and Hong Kong stocks, +22.5%.
Business Times
5 days ago
- Business
- Business Times
Trump's U-turn on Nvidia spurs talk of grand bargain with China
[BEIJING] Only a few years ago, the Biden administration declared export controls a 'new strategic asset' to help the US maintain 'as large a lead as possible' over China in advanced technology. US President Donald Trump is now upending that approach. In a reversal this week, the White House told chipmaker Nvidia it could soon resume sales of its less advanced China-focused H20 artificial intelligence (AI) accelerator. Advanced Micro Devices received similar assurances from the US Commerce Department. Explaining the decision, Commerce Secretary Howard Lutnick said the administration wanted Chinese developers 'addicted' to American technology, while insisting the US would not sell China 'our best stuff'. That, he said, required a more balanced policy that would keep the US 'one step ahead of what they can build so they keep buying our chips'. The shift in strategy, which angered China hawks in Washington, raises a key question as Trump sets the stage for a meeting with Chinese President Xi Jinping later this year: How far will the US go in rolling back a range of measures restricting business between the world's biggest economies imposed in the name of national security? 'The apparent loosening of export control on the H20 chips could be a sign of things to come,' said Kevin Xu, a tech investor and founder of US-based Interconnected Capital who formerly worked in the Obama administration. 'A wide range of bargaining chips are on the table now for a potential US-China tech grand bargain: Semiconductor manufacturing equipment, rare earths, battery technology, AI chips, even mutual market access.' While the US is a long way off from dismantling the bulk of restrictions on China, spanning everything from export controls to investment curbs to sanctions, Trump's recent actions open the door to redefining the economic relationship between the nations mere months after his imposition of 145 per cent tariffs took them to the brink of decoupling. Talks in Geneva and London then led to a truce in which the US agreed to lower tariffs and ease export controls in return for rare-earth magnets used to make goods such as smartphones, electric vehicles and high-tech weapons. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Even though Trump's first term changed the conversation in Washington to focus on the threat posed by China, the US president has always been transactional and less rigid on traditional national security issues. Trump has downplayed privacy issues over TikTok and on the campaign trail, made comments welcoming Chinese automakers to build plants in the US. 'He is not ideologically fixated on the need to have controls everywhere,' said Dominic Chiu, a senior analyst at Eurasia Group. 'So, if he sees that as a bargaining chip that he can use to gain concessions from China on rare earths and other things, then he would do it.' The move adds to the goodwill built over a recent flurry of diplomacy, including a cordial meeting between US Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi in Malaysia. Treasury Secretary Scott Bessent, who led the previous trade talks, expects to meet his counterpart, Vice-Premier He Lifeng, within 'the next couple of weeks' and has signalled the US will likely extend an Aug 12 deadline for the snapback of sky-high tariffs. The two sides are now inching towards what could be a series of agreements, if not a single grand deal, ahead of a potential leaders' meeting that analysts speculate could happen around the Asia-Pacific Economic Cooperation summit that kicks off in late October in South Korea. After meeting his Chinese counterpart last week, Rubio said such a sit-down was likely without suggesting a time frame, saying the two sides will have to 'build the right atmosphere and the right deliverables'. For the Trump administration, the objectives may look a lot like the president's first-term playbook: securing large-scale Chinese purchases of American goods to address the persistent trade deficit. He may also demand more Chinese action to curb the flow of fentanyl precursors – an area where Trump on Wednesday praised Beijing for already making 'big steps.' Washington is also seeking a resolution to the future of video app TikTok's US operations and assurances that Beijing will not weaponise its control over rare earths and other critical minerals. China, for its part, has an ambitious wish list. Among them is the complete rollback of US tariffs, including the 20 per cent duties linked to fentanyl and the legacy tariffs from Trump's first term that were upheld by Biden. Beijing may also push for an easing of investment restrictions and, crucially, further concessions on US export controls, which it views as a direct attempt to stifle its technological advancement. Kurt Tong, a former US consul general in Hong Kong and a partner at The Asia Group, said while Biden adopted a non-negotiable 'small yard, high fences' approach to technology, Trump has a different focus and is looking to show his transactional tack can bring results for the American people. 'He cares about trade, deficits, investment in the United States and getting along with China,' Tong said. That could make welcoming Chinese investment in the US, which would also help rebalance bilateral trade, an appealing notion to Trump, as he alluded to in his campaign remarks. 'In general, in this town, that is a forbidden suggestion,' said Washington-based Gerard DiPippo, associate director at the Rand China Research Center. 'However, if there's one president who might go for it, it's Trump.' BLOOMBERG
Straits Times
6 days ago
- Business
- Straits Times
Trump softens tone on China to secure a summit and trade deal with Xi
US President Donald Trump is now focused on cutting purchase deals with Beijing instead of addressing root causes of the trade imbalances. WASHINGTON – President Donald Trump has dialed down his confrontational tone with China in an effort to secure a summit with counterpart Xi Jinping and a trade deal with the world's second-largest economy, people familiar with internal deliberations said. Six months into his second term, Mr Trump has softened his harsh campaign rhetoric that focused on the US's massive trade deficit with China and resulting job losses. The warmer posture contrasts with his threats against other trading partners to ravage their economies with crushing tariffs. Mr Trump is now focused on cutting purchase deals with Beijing – similar to one he forged during his first term – and celebrating quick wins instead of addressing root causes of the trade imbalances. China posted a record trade surplus in the first half of 2025 amid booming exports. On July 15, the US president said he would be fighting China 'in a very friendly fashion.' In meetings with his staff, Mr Trump is often the least hawkish voice in the room, some of the people said. Top stories Swipe. Select. Stay informed. Singapore HSA launches anti-vaping checks near 5 institutes of higher learning Singapore Over 600 Telegram groups in Singapore selling, advertising vapes removed by HSA Business Singapore key exports surprise with 13% rebound in June Business Market versus mission: What will Income Insurance choose? Life First look at the new Singapore Oceanarium at Resorts World Sentosa Opinion AI and education: We need to know where this sudden marriage is heading Singapore Coffee Meets Bagel's Singpass check: Why I'll swipe right on that Singapore Jail for man who fatally hit his daughter, 2, while driving van without licence Administration officials stressed that Mr Trump has always liked Mr Xi personally and pointed to moments in his first term when he nevertheless imposed sweeping restrictions on Huawei Technologies Co. and tariffs on the majority of Chinese exports. Mr Trump's fluid playbook and his departure from promised hawkish policies have worried policymakers inside his administration as well as outside advisers, the people said. This week only exacerbated concerns that previous US red lines with China are now negotiable. Allowing Nvidia Corp. to sell its China-focused, less-advanced H20 chip once again – something multiple senior officials had said was not on the table – reversed the administration's own stated approach of keeping the most critical American technologies out of Beijing's hands. Treasury Secretary Scott Bessent in June cited H20 controls as evidence of the administration's toughness on China when pressed by senators who worried the US could trade advanced semiconductors for the Asian country's rare-earth minerals. While the US will still require approval for such exports – a restriction former President Joe Biden declined to impose – some Trump officials have privately objected to granting licenses they say will only embolden China's tech champions, the people said. Others have argued successfully that allowing Nvidia to compete with Huawei on its own turf is essential to winning the AI race with China. That view, championed by Nvidia Chief Executive Officer Jensen Huang, has gained traction inside the administration, people familiar with the matter said. 'Productive' talks Mr Trump has the final say in all trade decisions, an administration spokesman said. The president has 'consistently fought to level the playing field for American workers and industries, and the Administration continues to have productive discussions with all of our trading partners,' White House spokesman Kush Desai said. In a further effort to ease tensions, US officials are preparing to delay an Aug 12 deadline when US tariffs on China are set to snap back to 145 per cent after the expiration of a 90-day truce. Mr Bessent signalled in a Bloomberg Television interview this week that the deadline was flexible. One person familiar with the plans said the tariff truce could be extended another three months. This comes as Mr Trump is rolling out duties for other countries – including key allies – and threatening more actions on industries including pharmaceuticals and semiconductors. Last week, US Secretary of State Marco Rubio said a summit between Mr Trump and Mr Xi is likely. Mr Rubio, once among the staunchest China hawks in the Senate, said he had a 'very constructive and positive' sit-down on July 11 with Chinese Foreign Minister Wang Yi. 'Big steps' On July 16, Trump praised China's moves to tighten controls on chemicals used to make fentanyl, part of steps taken after the US president imposed a 20 per cent tariff on the nation for facilitating flows of the drug. 'China has been helping out,' Mr Trump told reporters. 'I mean, it's been, it's been a terrible situation for many years with fentanyl. But since I came here, we're talking to them, and they're making big steps.' Some administration officials, meanwhile, are focused on getting China to agree to purchase some volume of to-be-determined US goods and services, people familiar with the matter said. That could satisfy Mr Trump's concerns about the trade deficit but won't do much to close the yawning trade gap over the longer term. Mr Trump's gentler handling of China is causing a rift among his advisers. Some members of his trade team want to hold a tough line against Beijing and have promised privately that export controls would never be part of trade discussions, people familiar with their deliberations said. Yet during the trade talks in London in June, Commerce Secretary Howard Lutnick openly said that recent export controls – officially justified on the basis of national security – were also designed to 'annoy' Beijing. And this week, he – along with Bessent and White House AI and Crypto Czar David Sacks – said plainly that allowing some less-advanced Nvidia chip sales to China is indeed part of ongoing trade negotiations. This development is raising questions about how far Trump would go in negotiating away national security actions if the Chinese demanded it. Some hawkish advisers fear that a further rollback of chip controls is now inevitable, people familiar with the matter said. Others have maintained that allowing sales of H20s – which are far less capable than Nvidia's best models – is a far cry from exporting that leading-edge hardware, which they say is not up for discussion. 'You want to sell the Chinese enough that their developers get addicted to the American technology stack,' Mr Lutnick said on July 15 on CNBC. Closely watching the situation are allies and companies across Europe and Asia whose help the US wants to squeeze China's tech sector. Government and industry officials in those regions have gotten the message that Washington's strategy is subject to change, people familiar with the matter said. A half-dozen tech industry officials who've interacted with Mr Trump's team on China said they often leave meetings wanting details only to see core goals evolve in later discussions. Surprise reversals In many cases, those in charge of China tech policy have made decisions without involving offices that historically have played a role. Restrictions imposed in May on sales of chip design software to China – which have since been reversed – were part of a raft of Commerce Department measures that came as a surprise to many within the administration, Bloomberg has reported. The decision on H20 chips was also tightly held, people familiar with the matter said. Other actions that have been under consideration for months – including sanctions on Chinese chip giants and an effort to slap curbs on Chinese tech subsidiaries – have been delayed as officials pursue a trade deal. But Mr Trump is also known for reversing course on China often and sometimes quickly after taking a position – as was the case when he fulfilled Mr Xi's personal request to lift sanctions on Chinese telecom giant ZTE Corp. in 2018. He's also susceptible to criticism of his approach, which might indicate Mr Trump could change his tone yet again. 'President Trump is set on a China deal, but it may be short-lived,' said Dr Derek Scissors, a China expert at the American Enterprise Institute. 'The US trade deficit is well higher to date this year and the new budget will boost demand for imports in the fourth quarter. If a record 2025 trade deficit gets reported, all bets are off, including with China.' Beijing has made no secret it believes it has the upper hand. In London, US officials were taken aback by their Chinese counterparts' gloating over the position they find themselves in, people familiar with the exchange said. The Asian country's leverage stems from its grip on rare earth magnets and its ability to weaponize America's dependence on those supplies. China now requires companies to hand over sensitive data and reapply for rare-earth export licenses every six months. BLOOMBERG
Business Times
6 days ago
- Business
- Business Times
Trump softens tone on China to secure Xi summit and a trade deal
[HONG KONG] US President Donald Trump has dialled down his confrontational tone with China in an effort to secure a summit with counterpart Xi Jinping and a trade deal with the world's second-largest economy, sources familiar with internal deliberations said. Six months into his second term, Trump has softened his harsh campaign rhetoric that focused on the US's massive trade deficit with China and resulting job losses. The warmer posture contrasts with his threats against other trading partners to ravage their economies with crushing tariffs. Trump is now focused on cutting purchase deals with Beijing, similar to one he forged during his first term, and celebrating quick wins instead of addressing the root causes of the trade imbalances. China posted a record trade surplus in the first half of the year amid booming exports. On Tuesday (Jul 15), the US president said he would be fighting China 'in a very friendly fashion'. In meetings with his staff, Trump is often the least hawkish voice in the room, some of the sources said. Administration officials stressed that Trump has always liked Xi personally and pointed to moments in his first term when he nevertheless imposed sweeping restrictions on Huawei Technologies and tariffs on the majority of Chinese exports. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump's fluid playbook and his departure from promised hawkish policies have worried policymakers inside his administration as well as outside advisers, the sources said. This week only exacerbated concerns that previous US red lines with China are now negotiable. Allowing Nvidia to sell its China-focused, less-advanced H20 chip once again – something multiple senior officials had said was not on the table – reversed the administration's own stated approach of keeping the most critical American technologies out of Beijing's hands. Treasury Secretary Scott Bessent last month cited H20 controls as evidence of the administration's toughness on China when pressed by senators who worried the US could trade advanced semiconductors for the Asian country's rare-earth minerals. While the US will still require approval for such exports, a restriction former president Joe Biden declined to impose, some Trump officials have privately objected to granting licenses they say will only embolden China's tech champions, the sources said. Others have argued successfully that allowing Nvidia to compete with Huawei on its own turf is essential to winning the AI race with China. That view, championed by Nvidia chief executive officer Jensen Huang, has gained traction inside the administration, sources familiar with the matter said. 'Productive' talks Trump has the final say in all trade decisions, an administration spokesperson said. The president has 'consistently fought to level the playing field for American workers and industries, and the Administration continues to have productive discussions with all of our trading partners', White House spokesperson Kush Desai said. In a further effort to ease tensions, US officials are preparing to delay an Aug 12 deadline when US tariffs on China are set to snap back to 145 per cent after the expiration of a 90-day truce. Bessent signalled in a Bloomberg Television interview this week that the deadline was flexible. One source familiar with the plans said the tariff truce could be extended another three months. This comes as Trump is rolling out duties for other countries, including key allies, and threatening more actions on industries including pharmaceuticals and semiconductors. Last week, US Secretary of State Marco Rubio said a summit between Trump and Xi is likely. Rubio, once among the staunchest China hawks in the Senate, said he had a 'very constructive and positive' sit-down Friday with Chinese Foreign Minister Wang Yi. Some administration officials, meanwhile, are focused on getting China to agree to purchase some volume of to-be-determined US goods and services, sources familiar with the matter said. That could satisfy Trump's concerns about the trade deficit but will not do much to close the yawning trade gap over the longer term. Trump's gentler handling of China is causing a rift among his advisers. Some members of his trade team want to hold a tough line against Beijing and have promised privately that export controls would never be part of trade discussions, sources familiar with their deliberations said. Yet during last month's trade talks in London, Commerce Secretary Howard Lutnick openly said that recent export controls, officially justified on the basis of national security, were also designed to 'annoy' Beijing. And this week, he, along with Bessent and White House AI and Crypto Czar David Sacks, said plainly that allowing some less-advanced Nvidia chip sales to China is indeed part of ongoing trade negotiations. This development is raising questions about how far Trump would go in negotiating away national security actions if the Chinese demanded it. Some hawkish advisers fear that a further rollback of chip controls is now inevitable, sources familiar with the matter said. Others have maintained that allowing sales of H20s, which are far less capable than Nvidia's best models, is a far cry from exporting that leading-edge hardware, which they say is not up for discussion. 'You want to sell the Chinese enough that their developers get addicted to the American technology stack,' Lutnick said on Tuesday on CNBC. Closely watching the situation are allies and companies across Europe and Asia whose help the US wants to squeeze China's tech sector. Government and industry officials in those regions have gotten the message that Washington's strategy is subject to change, sources familiar with the matter said. A half-dozen tech industry officials who've interacted with Trump's team on China said they often leave meetings wanting details only to see core goals evolve in later discussions. Surprise reversals In many cases, those in charge of China tech policy have made decisions without involving offices that historically have played a role. Restrictions imposed in May on sales of chip design software to China, which have since been reversed, were part of a raft of Commerce Department measures that came as a surprise to many within the administration, Bloomberg has reported. The decision on H20 chips was also tightly held, sources familiar with the matter said. Other actions that have been under consideration for months, including sanctions on Chinese chip giants and an effort to slap curbs on Chinese tech subsidiaries, have been delayed as officials pursue a trade deal. But Trump is also known for reversing course on China often and sometimes quickly after taking a position, as was the case when he fulfilled Xi's personal request to lift sanctions on Chinese telecom giant ZTE in 2018. He's also susceptible to criticism of his approach, which might indicate Trump could change his tone yet again. 'President Trump is set on a China deal, but it may be short-lived,' said Derek Scissors, a China expert at the American Enterprise Institute. 'The US trade deficit is well higher to date this year and the new budget will boost demand for imports in the fourth quarter. If a record 2025 trade deficit gets reported, all bets are off, including with China.' Beijing has made no secret that it believes it has the upper hand. In London, US officials were taken aback by their Chinese counterparts' gloating over the position they find themselves in, sources familiar with the exchange said. The Asian country's leverage stems from its grip on rare earth magnets and its ability to weaponise America's dependence on those supplies. China now requires companies to hand over sensitive data and reapply for rare-earth export licenses every six months. BLOOMBERG
Yahoo
6 days ago
- Business
- Yahoo
Trump Softens Tone on China to Secure Xi Summit and a Trade Deal
(Bloomberg) -- The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say President Donald Trump has dialed down his confrontational tone with China in an effort to secure a summit with counterpart Xi Jinping and a trade deal with the world's second-largest economy, people familiar with internal deliberations said. Six months into his second term, Trump has softened his harsh campaign rhetoric that focused on the US's massive trade deficit with China and resulting job losses. The warmer posture contrasts with his threats against other trading partners to ravage their economies with crushing tariffs. Trump is now focused on cutting purchase deals with Beijing — similar to one he forged during his first term — and celebrating quick wins instead of addressing root causes of the trade imbalances. China posted a record trade surplus in the first half of the year amid booming exports. On Tuesday, the US president said he would be fighting China 'in a very friendly fashion.' In meetings with his staff, Trump is often the least hawkish voice in the room, some of the people said. Administration officials stressed that Trump has always liked Xi personally and pointed to moments in his first term when he nevertheless imposed sweeping restrictions on Huawei Technologies Co. and tariffs on the majority of Chinese exports. Trump's fluid playbook and his departure from promised hawkish policies have worried policymakers inside his administration as well as outside advisers, the people said. This week only exacerbated concerns that previous US red lines with China are now negotiable. Allowing Nvidia Corp. to sell its China-focused, less-advanced H20 chip once again — something multiple senior officials had said was not on the table — reversed the administration's own stated approach of keeping the most critical American technologies out of Beijing's hands. Treasury Secretary Scott Bessent last month cited H20 controls as evidence of the administration's toughness on China when pressed by senators who worried the US could trade advanced semiconductors for the Asian country's rare-earth minerals. While the US will still require approval for such exports — a restriction former President Joe Biden declined to impose — some Trump officials have privately objected to granting licenses they say will only embolden China's tech champions, the people said. Others have argued successfully that allowing Nvidia to compete with Huawei on its own turf is essential to winning the AI race with China. That view, championed by Nvidia Chief Executive Officer Jensen Huang, has gained traction inside the administration, people familiar with the matter said. 'Productive' Talks Trump has the final say in all trade decisions, an administration spokesman said. The president has 'consistently fought to level the playing field for American workers and industries, and the Administration continues to have productive discussions with all of our trading partners,' White House spokesman Kush Desai said. In a further effort to ease tensions, US officials are preparing to delay an Aug. 12 deadline when US tariffs on China are set to snap back to 145% after the expiration of a 90-day truce. Bessent signaled in a Bloomberg Television interview this week that the deadline was flexible. One person familiar with the plans said the tariff truce could be extended another three months. This comes as Trump is rolling out duties for other countries — including key allies — and threatening more actions on industries including pharmaceuticals and semiconductors. Last week, US Secretary of State Marco Rubio said a summit between Trump and Xi is likely. Rubio, once among the staunchest China hawks in the Senate, said he had a 'very constructive and positive' sit-down Friday with Chinese Foreign Minister Wang Yi. Some administration officials, meanwhile, are focused on getting China to agree to purchase some volume of to-be-determined US goods and services, people familiar with the matter said. That could satisfy Trump's concerns about the trade deficit but won't do much to close the yawning trade gap over the longer term. Trump's gentler handling of China is causing a rift among his advisers. Some members of his trade team want to hold a tough line against Beijing and have promised privately that export controls would never be part of trade discussions, people familiar with their deliberations said. Yet during last month's trade talks in London, Commerce Secretary Howard Lutnick openly said that recent export controls — officially justified on the basis of national security — were also designed to 'annoy' Beijing. And this week, he — along with Bessent and White House AI and Crypto Czar David Sacks — said plainly that allowing some less-advanced Nvidia chip sales to China is indeed part of ongoing trade negotiations. This development is raising questions about how far Trump would go in negotiating away national security actions if the Chinese demanded it. Some hawkish advisers fear that a further rollback of chip controls is now inevitable, people familiar with the matter said. Others have maintained that allowing sales of H20s — which are far less capable than Nvidia's best models — is a far cry from exporting that leading-edge hardware, which they say is not up for discussion. 'You want to sell the Chinese enough that their developers get addicted to the American technology stack,' Lutnick said Tuesday on CNBC. Closely watching the situation are allies and companies across Europe and Asia whose help the US wants to squeeze China's tech sector. Government and industry officials in those regions have gotten the message that Washington's strategy is subject to change, people familiar with the matter said. A half-dozen tech industry officials who've interacted with Trump's team on China said they often leave meetings wanting details only to see core goals evolve in later discussions. Surprise Reversals In many cases, those in charge of China tech policy have made decisions without involving offices that historically have played a role. Restrictions imposed in May on sales of chip design software to China — which have since been reversed — were part of a raft of Commerce Department measures that came as a surprise to many within the administration, Bloomberg has reported. The decision on H20 chips was also tightly held, people familiar with the matter said. Other actions that have been under consideration for months — including sanctions on Chinese chip giants and an effort to slap curbs on Chinese tech subsidiaries — have been delayed as officials pursue a trade deal. But Trump is also known for reversing course on China often and sometimes quickly after taking a position — as was the case when he fulfilled Xi's personal request to lift sanctions on Chinese telecom giant ZTE Corp. in 2018. He's also susceptible to criticism of his approach, which might indicate Trump could change his tone yet again. 'President Trump is set on a China deal, but it may be short-lived,' said Derek Scissors, a China expert at the American Enterprise Institute. 'The US trade deficit is well higher to date this year and the new budget will boost demand for imports in the fourth quarter. If a record 2025 trade deficit gets reported, all bets are off, including with China.' Beijing has made no secret it believes it has the upper hand. In London, US officials were taken aback by their Chinese counterparts' gloating over the position they find themselves in, people familiar with the exchange said. The Asian country's leverage stems from its grip on rare earth magnets and its ability to weaponize America's dependence on those supplies. China now requires companies to hand over sensitive data and reapply for rare-earth export licenses every six months. --With assistance from Jordan Fabian and Catherine Lucey. Forget DOGE. 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