Elizabeth Morgan | President Trump’s China visit – Any significance for this hemisphere?

US President Donald Trump paid a state visit to the People’s Republic of China, meeting with President Xi Jinping from May 13 to 15 in Beijing. This was the first presidential visit to China since President Trump visited there in his first term, November 8-10, 2017. President Joe Biden did not make a bilateral visit to China. He and President Xi Jinping met three times on the margins of the G20 and APEC Summits. APEC is the Asia-Pacific Economic Cooperation forum.

The USA and China are the two largest economies in the world, though China is classified as a developing country. China is also a communist country with what is called a socialist market economy. The US and China could be considered both competitors and adversaries: competitors in trade and investments. China, being more a state-managed economy, has been an issue in trade. They are adversaries in security matters as they are both nuclear powers and have strong militaries. The matter of the independence of Taiwan has been a security concern, as well as China’s ambitions in the Asia-Pacific region and elsewhere.

PRESIDENT TRUMP’S VISIT

This month’s visit was quite anticipated. It should have been in April, but was postponed due to the Iran war. US-China trade relations had been strained, as President Trump came to office in his second term increasing tariffs on Chinese goods. Higher tariffs were imposed on China during the first Trump administration and were not removed during the Biden administration. China is the US’s third- largest trading partner, and the US has a trade deficit with them.

President Trump made it clear on assuming office in 2025 that he aimed to reduce the trade deficit with China, to have more production return to the USA, and to have China purchase more US goods.

A tariffs tit for tat managed to avoid a full-scale trade war, but tensions remained.

SUCCESS OR FAILURE?

The White House fact sheet describes President Trump’s visit as a success, stating that he and President Xi reached consensus on matters related to peace and prosperity, agreeing that they should build a constructive relationship of strategic stability on the basis of fairness and reciprocity; that Iran should not have a nuclear weapon; that the Strait of Hormuz should be reopened and no tolls paid;

and their commitment to denuclearise North Korea. They agreed to establish US-China boards of trade and investment. In the interest of US workers, farmers, and industry, President Trump negotiated a sweeping package of commitments that will drive high-paying American jobs and open new markets for US goods. These include China addressing US concerns related to supply-chain shortages, as well as prohibitions or restrictions on the sale of rare earth production and processing equipment and technologies. China will make an initial purchase of 200 American-made Boeing aircraft, at least $17 billion per year of US agricultural products, and will restore market access for US beef and poultry.

It seemed that from China’s perspective, the meeting was fruitful. Their focus was on how both countries could work together to build a constructive relationship of strategic stability, with cooperation as its mainstay and its resilience based on exchange and cooperation over the next three years. It seemed the aim was to promote cooperation over confrontation. On trade matters, consultations between the teams were continuing.

Some commentators did not seem too impressed with the achievements listed by the USA. They had a different, more sobering takeaway from China’s statements and attitude. It seems that President Trump was very pleased with his visit and certainly seemed to be very impressed by President Xi. Commentators are calling this a meeting of equals. This was the G2 – the world’s most powerful leaders.

HOW SHOULD THIS BE READ IN THIS HEMISPHERE?

The Trump administration has stated that the Western Hemisphere is its sphere of influence. The USA should be the dominant power in this region. The impression given is that China is not welcomed in this region. It seems that President Trump was not pleased when Canadian Prime Minister Mark Carney made an official visit to China in January to discuss trade and other bilateral relations. In fact, Canada, among other things, was threatened with higher tariffs if it made a trade deal with China which could be seen as inimical to US trade interests.

Recently, we saw a joint statement from the US State Department with other Latin American and Caribbean (LAC) countries issuing a warning to China.

So, from this meeting between Presidents Trump and Xi, are we to read that they are now allies? Is China okay with the US suggesting that it should limit its activities in this region? Is China looking to back away and leave the LAC to the USA as long as they have the Asia-Pacific region?

What exactly is going on here? What are the messages being sent?

Note that the 18th BRICS (Brazil, Russia, India, China, South Africa, plus) Summit is scheduled to be held in New Delhi, India, September 12–13, as India holds the presidency. President Xi has been invited to the BRICS Summit, but has yet to confirm his attendance. He is meeting with Russia’s President Vladimir Putin, May 19-20. It seems that Beijing is attracting many leaders.

President Xi Jinping is scheduled to visit the USA on September 24. Of course, the 81st UN General Assembly high-level session starts in New York on September 22.

By the way, remember that the G20 presidency is held by the USA and the summit is scheduled to be held in Florida in December. President Trump did not invite South Africa, the only African G20 country, to its summit. The APEC Summit will be hosted by China in November. For note, the G7 will be meeting in France in June.

With the Iran war still without a resolution, it will be very interesting to see how these relationships unfold in the coming months.

Elizabeth Morgan is a specialist in international trade policy and international politics. Send feedback to columns@gleanerjm.com