Trump–Xi summit: Why the US and China should not underestimate each other
Trump–Xi summit: Why the US and China should not underestimate each other Expert comment LToremark 22 September 2026 The US and China both face serious domestic strains. As Trump and Xi meet this week to discuss trade, AI and Taiwan, neither side should mistake the other’s weaknesses for strategic decline. A superpower summit is a big deal. As US President Donald Trump and China’s President Xi Jinping meet in Washington this week, they have a lot to cover. They will try to extend a trade truce that expires in November, including China’s pause on rare earth export controls and America’s delay on chip restrictions. The leaders will also tackle Taiwan, where Beijing wants Washington to halt a $14 billion arms package, as well as China’s purchases of Iranian oil and a proposed dialogue on the national security risks of artificial intelligence (AI). In their negotiations, each side may be tempted to focus on the other’s weaknesses. But underestimating the other’s power would be unwise. China has many weaknesses – but should not be underestimated Many observers argue that China’s economic vulnerabilities will limit its international ambitions. Its growth model is faltering; its households still are not spending, so Beijing continues to push surplus production overseas. This has provoked a backlash of trade barriers from the US, EU and beyond. The property sector – once a quarter of the economy – is in its fifth year of slump, while a mountain of hidden local government debt threatens to drag down China’s growth for years to come. Meanwhile Xi’s government has become steadily more
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