It is not a complete success
While the American side is talking about a massive success, experts warn that the Chinese concessions are just pragmatic purchases and do not represent a real opening of the market for American companies. Thus, both sides continue to feel restrictions stemming from the previous customs war, which is also reflected in the statistics of mutual trade.
The average US tariff on Chinese goods now stands at 47.5 percent, a dramatic increase from the original 3.1 percent in place before Donald Trump’s first term in office.
In response, Beijing raised China’s average tariff on US goods to 31.9 percent, up from just 8.4 percent in 2018. These mutual trade barriers have had a direct impact on the total volume of two-way trade in goods, which has fallen to $415 billion in 2025, a massive drop from its all-time high of $690 billion recorded in 2022.
Technologies in the shadow of a prominent delegation
The high importance of the summit was underlined by the American business delegation, which included the leaders of the technology business – Elon Musk (Tesla), Tim Cook (Apple) and Jensen Huang (Nvidia). Their presence was evidence that electromobility, artificial intelligence and advanced semiconductors are currently at the center of the US-China rivalry.
Despite the presence of the head of Nvidia, however, according to Greer, US export restrictions on advanced AI chips were not the central topic of the discussions. After the negotiations, US Treasury Secretary Scott Bessent emphasized the need to maintain a technological lead over China in the field of artificial intelligence while simultaneously setting basic security rules. Trump said after the meetings that China plans to invest “hundreds of billions of dollars” in the companies represented in the delegation, but did not specify the details.
Contradictions in Taiwan and consensus in Iran
Although the side events, including the state banquet, appeared cordial, and Trump called Xi “his friend,” behind closed doors serious disputes resonated.
Beijing, for example, began to more assertively connect the issue of Taiwan with broader economic relations. Xi Jinping strongly warned the US president that Taiwan is the most sensitive point in bilateral relations. He warned that mishandling this issue could lead to a collision or even an open conflict.
However, both sides found common ground in the Middle East. Trump and Xi Jinping agreed that Iran should never have nuclear weapons. At the same time, both leaders are appealing for the immediate reopening of the Strait of Hormuz, the blockade of which makes imports more expensive even for China itself. In this regard, the Chinese Ministry of Foreign Affairs has already called for an immediate and permanent ceasefire.
Fall meeting in Washington
The leaders agreed at the summit to try to anchor relations on a platform of “constructive strategic stability”. Another opportunity to test these intentions will come soon. During Thursday’s state banquet, Trump officially invited Xi Jinping and his wife, Peng Liyuan, to the White House.
This visit will take place on September 24 and will be the third face-to-face meeting of the leaders since Trump’s return to the presidency. By this deadline, the negotiating teams will have to resolve the details of the functioning of the new Trade Council, as well as the issue of extending the current customs ceasefire from October, which is not yet guaranteed to continue beyond November of this year.
Magyar’s restart: The end of the Orbán era and the beginning of a difficult balancing act
With the weekend inauguration of Péter Magyar, the reign of Viktor Orbán finally ended after sixteen years. The event was held in a symbolically euphoric spirit – the flag of the European Union returned to the parliament building, the Ode to Joy sounded and the crowds celebrated the retreat of propaganda in the streets.
However, the new leader, whose Tisza party won a constitutional majority, is expected to take immediate action on two key fronts. On the domestic scene, voters insist on solving economic problems, rising living costs, improving the quality of public services and cleaning the state of corruption.
On foreign policy, Magyar, a former diplomat, is expected to quickly mend fractured relations with the EU and to unblock frozen European billions by August. His strategy is to build a stronger Central European bloc, primarily by deepening the strategic partnership with Austria.
However, despite a strong mandate, Magyar faces extremely difficult obstacles. His electoral victory is not based on a deep identification with the program, but rather on opposition to Orbán, which forms a very fragile voter base.
The biggest challenge of the new government will thus be balancing. Although Brussels expects a sharp turn to the West, Hungarian voters refuse to cut themselves off from Russian gas and are strongly against military support for Ukraine or its rapid accession to the EU. Magyar will thus have to demonstrate enormous political skill in order to meet European demands to unlock the funds and at the same time not lose support at home.
Photo of the week:
In the photo, Donald Trump shakes Xi Jinping’s hand in his now notorious way. The two leaders held each other for a full ten seconds before Trump extended his left hand and gently patted Xi Jinping five times. There was no “big, fat hug” that Trump had previously promised on social media.
According to the media, Trump has a habit of awkward and very intense handshakes with world leaders who are allegedly preparing for them in advance.
What else awaits us:
- Palestinians commemorate the Day of the Palestinian Exodus (Nakba), when hundreds of thousands of Palestinian Arabs left or fled their homes during the first Arab-Israeli war (1948-1949) and in the years after it.
- The third round of direct negotiations between representatives of Lebanon and Israel will take place on the grounds of the US State Department.
- The Office of the United Nations High Commissioner for Human Rights (OHCHR) will present a new report on the state of human rights in the occupied Palestinian territories.
- The Dutch cruise ship MV Hondius, on which the dangerous hantavirus has spread, arrives at the port of Rotterdam.
- The NATO Military Committee will meet at the level of the Chiefs of General Staff. They will discuss strengthening deterrence and defense, the state of ongoing operations and political priorities ahead of the NATO summit in Ankara. They will also deal with the further development of defense planning, the situation in Ukraine and closer cooperation between NATO and the EU.
- The 76th congress of the Sudeten German expatriate association (SdL), which represents the interests of Germans deported from Czechoslovakia after World War II and their descendants, will begin. It is being held in the Czech Republic for the first time, and Bavarian Prime Minister Markus Söder and German Interior Minister Alexander Dobrindt want to participate.
- Awards ceremony at the end of the 79th Cannes International Film Festival.
- Elections will be held in Cyprus, in which voters will decide on 56 out of a total of 80 members of the unicameral parliament. According to the constitution, the remaining 24 seats are allocated to the Turkish Cypriot community, but they remain vacant for a long time.
