The meeting between Chinese President Xi Jinping and US President Donald Trump was highly anticipated, but it never happened. After weeks of discussions about a possible trade agreement, the friendly atmosphere between the two major global economic powers changed. Beijing expanded restrictions on rare earth minerals and tightened controls on strategic exports. Washington, meanwhile, adopted a threatening stance by imposing new sanctions and increasing tariffs.
China is at an impasse, fueled by pride and power
The political relationship between China and the United States is experiencing a new phase of conflict. The two great powers believe they have the upper hand and refuse to give in, making real progress in the negotiations unlikely. According to some experts in the field, Beijing claims that dialogue alone is not enough to contain American pressure and therefore sees countermeasures as an essential way to level the playing field.
A few weeks ago, Trump had reported that talks were progressing, which generated a brief bout of optimism before the meeting between the presidents collapsed. China argues that it can resist sanctions with the help of its domestic economy and state support for technology-based industries, while the United States relies on its own economic recovery and international influence.
Amid this conflict between the two countries, some companies and investors are anxiously awaiting the end of this situation and the resolution of this impasse. What seemed to be merely a trade dispute has turned into a battle for global influence, and this has already had direct impacts on sectors such as energy, technology, and defense.
The war for rare earth minerals and critical technologies
The main focus of this conflict was recently China’s decision to expand its export controls on rare earth minerals, which are essential elements for manufacturing chips, engines, and even military fighter jets.
China currently dominates over 90% of the global production of these minerals and is using its strategic position as a tool to pressure the US. Analysts point out that this action clearly demonstrates a shift in the country’s stance, which, instead of simply reacting, now seeks to impose its own rules on its relationship with the United States. The US has called this decision “all-out economic warfare,” and the White House has begun evaluating equivalent countermeasures.
Negotiations and cross-threats between the two countries
Relations between the two countries are increasingly strained, and meanwhile, diplomatic efforts continue. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng intend to meet in Malaysia in the coming days in an attempt to defuse the situation between Xi and Trump. Sources close to the meeting say the chances of a comprehensive agreement in the negotiations are slim.
What are the risks of an unprecedented escalation?
The most worrying aspect of this scenario is the possibility of an escalation that goes beyond trade. Sectoral tariffs, technological restrictions, and digital security measures could create an economic blockade with global repercussions. Even though the leaders of both countries claim to be seeking a solution, the atmosphere is one of total distrust, and experts believe the best outcome would be a limited agreement. But until then, the world must prepare for months of tension and uncertainty.
The diplomatic relationship between China and the United States remains the main axis of current geopolitical disputes. The postponement — or failure — of the meeting between Xi and Trump ultimately symbolizes more than a political or diplomatic issue, but a collapse of a dialogue based on trust between the two countries. Each new gesture by the countries of reluctance to reach an agreement or negotiation reinforces the division between the two major powers.