President Donald Trump claims that America has increasingly profited from trade with China, largely playing down the tensions over rare earth minerals, tariffs and emerging technologies such as artificial intelligence that could rupture relations between the world’s two largest economies.
Trump will be in Beijing for a summit with Chinese leader Xi Jinping, in what could potentially be the first of four meetings this year.
“We’re doing a lot of business with China and making a lot of money,” Trump said last week. “We’re making a lot of money — it’s different than it used to be.”
The summit is primarily about keeping the economic relationship stable, with only modest policy announcements expected. A trade truce reached last October likely will be extended, while China may announce plans to buy American soybeans, beef and Boeing airplanes.
Engagement would only be the first step toward addressing the competition between the U.S. and China, as tit-for-tat tariffs, the AI and electric vehicle buildout, and the Iran war could upend relations.
Despite Trump’s claims about making money, China bought nearly $50 billion less in American products last year than it did in 2022.
The United States also now imports more goods from Taiwan than China, a change provoked in part by the AI race that has U.S. firms buying computer chips and servers from the self-governing island.
Traveling to China as part of the U.S. delegation are some 17 CEOs, including Tesla’s Elon Musk, Apple’s Tim Cook and Boeing’s Kelly Ortberg, the White House says.
Several potential strains could easily upset the cheery talk of friendship — raising questions about whether any meaningful progress can be made at the summit on issues like:
— China’s control of the majority of rare earth mining and almost all of the processing for those minerals widely needed for electronics. The Trump administration is trying to develop its own rare earths production with new partnerships and investments in companies, a strategy that would unfold over several years.
— The U.S. push to limit China’s access to the most advanced computer chips. These chips, designed by companies such as Nvidia and AMD, have the processing power to further develop AI.
— China’s dominance as an automaker. Its worldwide exports of vehicles increased 21 percent last year, according to the China Association of Automobile Manufacturers. China can sell EVs at a much cheaper price than automakers in the U.S., Germany, Italy, Japan and South Korea.
— Tariffs. After the Supreme Court struck down Trump’s tariffs, the administration launched national security investigations under a provision of the Trade Act of 1974 to impose new tariffs based on excess industrial capacity and efforts to prevent slave labor that could potentially withstand legal scrutiny.
— U.S. sanctions on a Chinese oil refinery and dozens of tankers and shippers for involvement in transporting Iranian oil. Beijing responded to the action earlier this month by demanding that no one abide by the U.S. penalties against Chinese businesses. The countries also are jousting over management of the Panama
Canal.
