Trump and Xi Meet Amid an Uneasy U.S.-China Trade Truce
When the United States and China reached a trade truce during a meeting in South Korea a year ago, it helped restore some stability to an economic relationship that was threatening to spin out of control.The agreement forced President Trump to walk back punishing tariffs on Chinese exports, and made China promise to maintain exports of critical minerals that it had cut off in response to the president’s levies.Negotiators appear to be preparing to extend that agreement as Xi Jinping, the leader of China, comes to Washington to meet with Mr.Trump later this week.
On Sunday night, U.S.officials said that they would discuss setting up a dialogue on artificial intelligence and promoting trade in nonsensitive goods like energy and consumer products when Mr.
Trump meets Mr.Xi this week.But despite the plans for a warm state dinner and other pomp and circumstance at the White House, the truce between the United States and China has been uneasier than it might appear.
It has not prevented either government from continuing to take action against one another in ways that have sometimes threatened to upset the agreement entirely.Both nations have blamed each other for violating promises made last October in Korea.U.S.
officials say that China’s exports of many minerals necessary for cars, semiconductors and power tools are still overly restricted, leaving some companies uncertain about their supplies.China’s purchases of farm goods lag behind promised levels.
And U.S.companies have also been deeply worried about a series of decrees that China’s State Council has issued since March, which expanded the Chinese government’s power over global companies that operate in China.The rules restrict the unauthorized auditing of supply chains in China — something that is necessary for firms to comply with forced labor laws — and penalize firms for complying with foreign sanctions against Chinese firms.
They also tighten state oversight for outbound investments and mine...