Trump unstiffening on China
(MENAFN) US President Donald Trump has softened his tough approach toward China in an effort to pave the way for a meeting with Chinese President Xi Jinping and secure a trade agreement with the world’s second-largest economy, Bloomberg reported on Wednesday, citing sources close to the matter.
A potential summit between Trump and Xi seems increasingly likely after US Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Malaysia last week. Rubio characterized the discussions as “positive,” noting that both nations are eager for a leadership-level meeting. Beijing also praised the talks as “pragmatic and constructive.”
According to Bloomberg’s sources, Trump is now prioritizing signing purchase agreements with Beijing and focusing on short-term victories rather than addressing the deeper causes of the trade imbalance. This represents a shift from his previous hardline strategy, which sought to reduce the US trade deficit through sweeping tariffs. In April, Trump imposed broad duties on over 90 countries, including China, prompting Beijing to retaliate. This tariff battle escalated to US tariffs reaching 145% and China’s hitting 125%. Talks in Geneva this May resulted in a temporary pause on new tariffs.
Speaking Tuesday, Trump said the US would be engaging with China “in a very friendly fashion,” indicating a clear preference for diplomacy over conflict. Treasury Secretary Scott Bessent hinted that Washington might postpone the looming August 12 tariff increase, which would raise duties on Chinese goods to 145%. Bloomberg sources said this delay could extend the current trade truce by another three months.
Trump’s softer stance on China has sparked divisions within his administration, with some advisers advocating a tougher approach, according to Bloomberg.
In a related move, the US recently allowed chipmaker Nvidia to resume sales of its lower-spec H20 chips to China, reversing earlier promises to block AI-related technology exports to Beijing. While some officials warn this could strengthen China’s tech sector, others, like Commerce Secretary Howard Lutnick and tech adviser David Sacks, argue that limited sales are strategic for maintaining US dominance in AI. Lutnick explained to CNBC that selling enough technology to keep Chinese developers reliant on US products serves America’s long-term interests.
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