US and China Aim for Stronger Relationship

On Monday, President Donald Trump announced a commitment from the US and China, the world’s two largest economies, to foster a “great relationship.”

In remarks made before a meeting with South Korean President Ye Mi Myung, Trump stated, “We have a much bigger and better card than they do.” He suggested that the US holds significant advantages but refrained from revealing what those “cards” encompass, leaving it ambiguous whether he was referring to economic power or political influence. “But I don’t want to play those cards. If so, it would destroy China,” he added.

Recently, Trump had a conversation with Chinese President Xi Jinping and hinted at a possible future meeting as both nations continue their trade negotiations. “At some point, maybe this year or soon after,” he mentioned, noting that Xi had previously extended an invitation.

On August 12, Washington and Beijing agreed to a 90-day extension of their trade ceasefire, aiming to allow more time for negotiations. Earlier this year, Trump increased tariffs on nearly all Chinese goods, which peaked at 145% in April. Currently, the US imposes a 30% tariff on most Chinese imports, while China’s tariff rate on US imports stands at 10%.

In July, Secretary of the Treasury Scott Bescent highlighted China’s support for oil as a focal point of competition during the latest trade consultations held in Sweden. Bescent had previously negotiated with Chinese officials in Geneva and London.

Washington has long expressed concerns over how Iran and Russia utilize funds from oil exports to support destabilizing actions globally. Despite US sanctions, China remains the leading importer of Iranian oil and the second-largest importer of Russian oil.

In addition to addressing oil imports, Bescent shared the US’s goal to diminish China’s dominance as a global manufacturing hub and to encourage more participation in global trade as an import partner.