This past week—October 30, 2023—a momentous city-to-city summit took place in Gyeongju, South Korea. There, U.S. President Donald Trump and Chinese President Xi Jinping convened to address the growing trade conflict between their countries. The summit produced a new truce. This deal is an attempt to defuse the aggressive, high-strung posture that has come to define the trade war between the U.S. and China.
That meeting was a turning point. This happened just as the US-China trade war heated up, with both countries escalating tariffs that threatened global economic stability in the process. With Washington involved in the discussions, the leaders sought to unwind some of the harsh trade measures and threats that had been exchanged in recent months.
Critics have described this realpolitik detente as delicate, an elegant way of mentioning the uneasy calculus that is U.S.-China relations. Yet, even so, both Xi and Obama had equally strong motives to de-escalate tensions. For Trump, a resolution could bolster his domestic standing as he heads into an election year, while Xi’s government faces economic pressures that necessitate stability and growth.
The outcome of the summit was historic not only for the United States, but for China. Thanks to both leaders’ diplomatic nimbleness, each country was able to swerve from a potentially catastrophic game of geopolitical chicken. The deal finally struck in Busan is an important step in the right direction. It serves to restore confidence and collaboration between the world’s two biggest economies.
In the wake of the summit, experts are more than a little bit hopeful that the truce foretells more positive things to come. Though it provides immediate respite from the trade war, they warn that the root causes are left untouched. The risk of sparking new resentment and unrest is constant, reminding us of the fragility of the peace they’ve managed to achieve.