How Xi managed to wrest a number of concessions from Trump

What was noticeable right from the start: The size difference between the two politicians has become smaller. According to official information, Trump is 1.90 meters tall, Xi is said to be a little more or less than 1.80 meters, depending on the source. Unlike previous meetings, this time both met on equal terms. So whether Trump shrunk or Xi wore high heels or shoes – the symbolic meaning of the images will particularly please the Chinese.

The outcome of the summit also makes Xi seem bigger. “He is a tough negotiating partner,” the US President said while shaking hands with the assembled journalists. Later, on board the presidential plane Air Force OneTrump then chatted in detail about the content of the talks. And it actually sounded as if the US government had made significantly greater concessions than the Chinese government.

China could regain access to US AI chips

Trump surprisingly stated that he had “talked to Xi about the possibility” of US companies again Exports of advanced processors that are needed to operate modern AI models. That would be an enormous concession to Beijing.

China’s tech industry has suffered for years because it is not allowed to import AI chips made using US technology. However, the fear in Washington was always that Chinese state-owned companies could take over the technology and use it to develop more cutting-edge technology Weapon systems use.

Especially the American industry leader Nvidiacurrently the most valuable company in the world, recently tried to persuade Trump to relax the regulations. Nvidia CEO Jensen Huanga native of Taiwan who speaks fluent Chinese, has therefore been a guest at the White House several times. However, Trump noted that the most modern Nvidia chips are nicknamed “Blackwell” will not be allowed to be delivered to China in the future either.

China used rare earths to force concessions

It is an astonishing success in negotiations that the Chinese government’s biggest return appears to be the one threatened at the beginning of December Export restrictions for rare earths postponed by one year. Beijing finally conjured up this drastic measure just three weeks ago.

So Xi and his negotiating team succeeded with a move that could have come straight from the Trump administration: They created a crisis that didn’t exist before right before the summit and then offered to resolve it only in exchange for something quid pro quo.

USA halves tariffs against China to 10 percent

As expected, the US will not impose new punitive tariffs on Chinese goods. But that’s not all: Trump announced that he was the last one still active Halve punitive tariffs against China from 20 to 10 percent become. This would be the US tariff rate against China lower than that of the EU (15 percent).

However, significantly higher tariff rates still apply to certain Chinese goods, e.g. B. a 100 percent surcharge on electric cars from China, which is why the average tariff on Chinese goods will remain at 47 percent.

In return, Beijing will impose stricter measures to restrict the export of chemicals from China, those for the production of the drug Fentanyl can be misused. Drug cartels in Latin America import Chinese chemicals on a large scale for precisely this purpose. However, many of these exports are already illegal; So it is questionable how big the impact on fentanyl production will be this time.

Soybeans in exchange for oil and gas

It has also been known for days that China will import soybeans from the USA again. In the wake of the customs dispute in the summer, Chinese companies faced a large number of suppliers Brazil changed course and thus put US soybean farmers under pressure. Many of them are Trump voters.

What is new, however, is that China should also import US oil and gas, as Trump explained. However, he did not comment on the planned extent. Basically, it is always positive for China when it finds new sources for energy imports: No other country produces or consumes even half as much electricity as the People’s Republic; The need for energy supplies from abroad is correspondingly high.

What wasn’t talked about

Quite surprising: the much-noticed, alleged one Tiktok–Deal apparently wasn’t a topic of conversation. As is well known, the Chinese social media platform will have to completely reorganize its US business if it does not want to be banned in the USA. Actually, there is already a plan here that was drawn up months ago and is highly controversial in the USA. Apparently it is not as concrete as Trump tried to sell it in the summer.

Also the democratically governed island claimed by China Taiwan According to Trump, it “didn’t come up.” Xi’s open threats of military “reunification” with the island are the biggest point of conflict between the two major powers.

Trump is traveling to China in April – that is also a victory for Xi

But there also have to be topics for the next meeting soon. As both sides subsequently confirmed, Donald Trump will visit Beijing in April. This is also a small victory for the power politician Xi: Unlike other heads of state and government, China’s ruler does not have to show up at the White House first; instead, the US President comes to him. This is really the strongest symbol of eye level.