Chinese President Xi Jinping and US President Donald Trump’s agreement to extend their trade truce reflects the fact that both sides have leverage over the other. In a world where the rules-based trading system is not functioning, the current fragile equilibrium may be the best one can hope for.
NEW YORK—Chinese President Xi Jinping’s state visit to Washington in September produced no major new agreement. But it did result in an extension of the trade truce that Xi and US President Donald Trump struck in Busan, South Korea, last October. Instead of expiring on November 10, the truce will expire on January 10, 2027. Though modest, this achievement has given an unstable world economy a reprieve.
NEW YORK—Chinese President Xi Jinping’s state visit to Washington in September produced no major new agreement. But it did result in an extension of the trade truce that Xi and US President Donald Trump struck in Busan, South Korea, last October. Instead of expiring on November 10, the truce will expire on January 10, 2027. Though modest, this achievement has given an unstable world economy a reprieve.