As Trump readies to meet Xi, experts say he is desperate for a win'
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As Trump readies to meet Xi, experts say he is desperate for a win'
"Trade between the two countries has suffered since Trump came into office even as China's exports have hit new highs. With the leaders of the United States and China set to meet this week, experts say this is the best time for President Xi Jinping to negotiate. The US is busy with wars in the Middle East, and President Donald Trump's approval rating is cratering at home: he is desperate for a win, which could give China the upper hand."
"Trade relations really, really deteriorated. US imports from China fell by more than 25 percent and exports to China fell by 25 percent or more. Those are huge numbers in one year, said Chad Bown, the Reginald Jones senior fellow at the Peterson Institute of International Economics (PIIE). There doesn't seem to be any floor to how bad the relationship is."
"By one estimate, US exports to China would have been nearly 60 percent higher in 2025, or roughly $90bn annually, without Trump's trade wars, Bown says. Even as US imports from China fell fell down 4 percent in 2025 to 9 percent of imports its imports from other countries rose 9 percent, as per PIIE's Bown, as businesses adapted to the higher tariffs imposed on China to move their supply chains to other countries, including Mexico, Vietnam and Taiwan."
"Beijing retaliated with its own tariffs and halted the exports of rare earth metals, an essential component for a range of industries, including cars and smartphones, and which China has a monopoly in. While things have eased slightly since the peak of that freeze, they are far from normal. China's trade surplus hit a high of nearly $1.2 trillion last year as it made up for reduced trade with the US by increasing business with other parts of the world, showing it has moved away from it"
Trade between the United States and China has worsened since Trump returned to office and imposed high tariffs, including rates reaching 145 percent on China. China retaliated with its own tariffs and halted exports of rare earth metals, which are essential for industries such as cars and smartphones and where China holds a monopoly. Although the rare-earth freeze eased somewhat, trade remains far from normal. US imports from China fell by more than 25 percent and US exports to China fell by 25 percent or more in one year. US exports to China could have been about 60 percent higher in 2025 without the trade wars. US firms shifted supply chains to other countries, while China increased trade with other regions, pushing its trade surplus to nearly $1.2 trillion.
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