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Can China build on eased trade tensions with US amid Trump's many distractions?
Can China build on eased trade tensions with US amid Trump's many distractions?

South China Morning Post

time10 hours ago

  • Business
  • South China Morning Post

Can China build on eased trade tensions with US amid Trump's many distractions?

While the US-China talks in London earlier this month suggested Beijing had the negotiating edge over Washington's other major trading partners, observers warn that China may need to temper expectations of a restoration of senior-level exchanges. Advertisement US President Donald Trump's competing priorities – both domestically and internationally – could distract his administration from the pressing need to establish a lasting agreement on US-China trade relations, they said. But while the Trump administration remains in the early stages of formulating its China policy, Beijing should advance a leader-driven process to stabilise bilateral ties, laying the groundwork for a trade agreement ahead of a potential summit. Sourabh Gupta, a senior policy specialist with the Institute for China-America Studies in Washington, said the framework reached in London was 'a genuine de-escalation of trade tensions'. 'At least, that's how the two sides envision it,' he said, noting that the framework essentially marked a return to last month's Geneva agreement, with both parties having 'a vested interest in getting to 'yes' on a trade deal'. Advertisement According to Gupta, the outcome of the talks – alongside the first call between Chinese President Xi Jinping and Trump since the latter started his second term – has placed China as a 'front-runner' in Washington's negotiations with major trading partners. While the London framework represents a temporary truce rather than a comprehensive deal, no other US trading partner has secured a comparable agreement, despite parallel negotiations with the European Union, Japan, South Korea, Canada, India and others.

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