In Beijing, the US and China tiptoed around tech and critical minerals

The Xi-Trump summit in Beijing unfolded much more cordially than the tense truce in Busan. In the six months since the leaders met in the South Korean city, America’s bargaining position has weakened considerably from developments both domestic and international. From a reluctant respite in tensions, US-China relations have evolved to what may be the beginning of a reconciliation.The two great powers interact at three levels. At the bottom is Trade and Investment; we can expect the terms of the Busan trade truce to be revised as the context evolves. At the top is Geopolitical Rivalry – with an America drained by the Iran war. In the middle is the most strategic layer, involving technology and critical supply chains, shaping cooperation in the level below and constraining conflict in the level above.The bottom layer is the easiest to self-maintain. In Beijing, the United States and China agreed to set up separate boards to manage bilateral Trade and Investment. These boards primarily cover non-sensitive sectors, however, and function well only if there is strategic stability in the top layer.