Despite President Trump's public statements about wanting a deal with China, communication between him and President Xi Jinping has stalled amid escalating trade tensions. The US has imposed significant tariffs on Chinese goods, while China has retaliated with its own tariffs and restrictions.
The White House insists that China must initiate contact, believing Beijing is responsible for escalating the conflict. However, Chinese officials claim that dialogue should be conducted with mutual respect and reject pressure tactics.
The US is prioritizing trade deals with other countries to pressure China, while China is exploring alternative sources for goods and considering strategic actions, including targeting US companies operating within China. The article also explores the possibility of backchannels, including through business leaders, but those attempts so far haven't been successful.
The article explores various scenarios, including the potential for further escalation and the risks of a wider economic conflict. Experts offer varying perspectives on which country holds more leverage and what the potential consequences might be for both countries and the global economy.
The article recalls the relationship between Trump and Xi during Trump's first term, highlighting both periods of cooperation and increased tensions over trade agreements and enforcement. The article points to Trump's dissatisfaction with past agreements and his desire for a more wide-ranging deal that extends beyond trade to encompass cooperation on other issues like fentanyl.