[US-China Summit] Trade Truce Extension on the Table... "Tariff Cuts on 45 Trillion Won Worth of Goods Discussed"

Summit Held Seven Months After Trade Truce Deal

Speculation Grows Over U.S. Urging China to Mediate Iran Conflict

CEOs of Tesla, Apple, Boeing Among Key Delegation Members


China Demands "Four Red Lines" on Taiwan

Shift in D

U.S. President Donald Trump and Chinese President Xi Jinping held a summit at the Great Hall of the People in Beijing on the morning of the 14th. It has been about seven months since the two leaders reached a truce agreement in the trade war at Gyeongju at the end of October last year. During the summit, which will continue through the following day, it is expected that the truce will be extended and that tariffs will be adjusted on a range of goods with a combined market value of 45 trillion won.

President Trump arrived at the Great Hall of the People at around 10 a.m. for the U.S.-China summit. This is his first visit in nine years since November 2017. He previously visited the venue during his first administration for a summit meeting. China welcomed him with a grand ceremony.

The main agenda item highlighted by President Trump was trade negotiations between the two countries. In April last year, President Trump declared a trade war not only with China but with countries around the world. In October, just six months later, he met with President Xi at Gyeongju and agreed to a temporary truce. The United States promised to ease some restrictions on semiconductor technologies, while China in return agreed to ease restrictions on rare earth exports and to purchase U.S. soybeans.

This time, attention is focused on whether the two sides will simply extend the truce or move toward a more relaxed trade relationship. Citing four anonymous sources, one foreign media outlet reported that the two countries are expected to lay the groundwork for easing tariffs on goods that account for a market of about 30 billion dollars (approximately 44.7 trillion won).

There is also speculation that China will be urged to play a mediating role in the Iran war. President Trump rejected such speculation, stating that "mediation is not necessary," but U.S. media interpreted his remarks as an effort to strengthen the U.S. negotiating position ahead of the summit with China.

It is known that China relies on Iran for about 13% of its total crude oil imports. China, considered a close ally of Iran, has reportedly been providing a secret financial lifeline to Iran behind the scenes. In this context, the U.S. Department of the Treasury directly intervened, raising the pressure ahead of the summit by imposing sanctions on Chinese vessels under the name of "Economic Fury" operation.

U.S. President Donald Trump spoke at the White House on the 11th (local time). Photo by AFP

In addition, President Trump was expected to urge China to make large-scale purchases of U.S. products known as the "3Bs"—beef, Boeing, and soybeans. With Kelly Ortberg, CEO of Boeing, included in the visiting delegation, Bloomberg News reported that the Chinese government is considering purchasing about 500 units of Boeing's 737 Max aircraft. If the deal goes through, it will mark China's largest order from Boeing since 2017. Furthermore, with CEOs of major U.S. companies such as Nvidia, Tesla, Apple, and Qualcomm accompanying the delegation, there was anticipation that the U.S. side would receive significant concessions from China.

On the other hand, what China wants from the U.S. is a softer stance on cross-strait issues. On May 12, two days prior, the Chinese Embassy in the U.S. outlined "four red lines" in the U.S.-China relationship through its official X (formerly Twitter) account. The four taboos presented by China are: the issue of Taiwan, democracy and human rights, developmental path and political system, and China's right to development. According to Bloomberg News, the U.S., ahead of its visit to China, postponed a 14 billion dollar arms package to Taiwan.

Regulations on AI semiconductor chips and advanced manufacturing equipment are areas where the interests of the two countries are intricately intertwined, and some analysts have called this the "hidden core agenda." While the United States is concerned about China's technological rise, for U.S. IT companies such as Nvidia and Apple, China remains one of the most important markets in the world. Conversely, as China pursues technological self-reliance, it has a pressing need for advanced manufacturing equipment. Notably, Nvidia CEO Jensen Huang was initially excluded from the U.S. delegation but was later added, which analysts interpret as reflecting a shift in the Trump administration's stance. In the case of Nvidia's "H200" chip, the U.S. government approved exports to China in December last year. As a result, the U.S. planned to take a 25% commission on sales, but the Chinese government did not allow domestic companies to make purchases.

Changes in China's diplomatic protocol are also a key point of interest in this summit. In 2017, China emptied the Forbidden City, which at the time attracted 80,000 daily tourists, to host President Trump and the First Lady, making them the first heads of state to dine inside the Forbidden City.

However, this time the tone shifted from the moment President Trump landed at Beijing Capital International Airport. The New York Times and Associated Press analyzed that while China welcomed President Trump’s visit with a military band, honor guard, and a special event at the Temple of Heaven, the overall protocol was managed at a lower level than during his first administration in 2017. For example, Han Zheng, a figure known for ceremonial duties, rather than a key power broker in foreign affairs, was dispatched to greet him at the airport. In contrast, during President Trump’s first visit in 2017, Yang Jiechi, then a key Politburo member in charge of foreign affairs, personally came to the airport. Yang was a core figure in China's foreign and security policy. The New York Times noted that these subtle changes reflect China's growing self-confidence.

There are also various interpretations regarding the impact of this summit on South Korea. At a conference hosted by the Center for Strategic and International Studies (CSIS) in Washington D.C., Mark Lambert, former Deputy Assistant Secretary of State for East Asian and Pacific Affairs, predicted that China, which is in conflict with Japan, would continue the trade truce with the U.S. in order to maintain friendly relations with South Korea and the U.S. He also noted that if a cross-strait conflict arises and the U.S. becomes involved, South Korea could find itself in a difficult position. He suggested that North Korea might take advantage of the situation to cause problems, and that the U.S. would not want South Korea to lose focus on its defenses against North Korea.

This content was produced with the assistance of AI translation services.