The main outcome of U.S. President Donald Trump’s summit with Chinese leader Xi Jinping in Beijing last week was stalemate, as both men declined to make concessions on the issues that have ensnared the world’s two largest economies in an epic great-power competition.
The effective U.S. tariff rate on Chinese goods remains 22%, while extensive sanctions on China’s semiconductor sector have not been relaxed. It is restrictions on access to advanced chipmaking equipment — particularly the Extreme Ultraviolet (EUV) lithography machines made by the Netherlands’ ASML — that Beijing most wants eased, not curbs on artificial intelligence chip sales. In fact, Xi told Trump during their meetings that China prefers to develop its own high-end AI chips rather than buy them from the U.S.’ Nvidia.
The U.S. and China did reach agreement on several issues. Beijing pledged to buy at least $17 billion in American agricultural products annually through 2028 as well as 200 Boeing jets, with a delivery timeline not yet established.
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