Xi's Truce Strategy: Why the West Misreads China's Strength

Trump and Xi meet with different urgencies: Trump needs results before midterm elections, while Xi can afford to wait. The truce serves both leaders, despite Western perceptions of Chinese strength. China's economy shows fragility beneath manufacturing strength: retail sales grew only 0.4%, fixed investments fell 7.2%, while industrial production accelerated 5.2% driven by exports. Domestic demand remains depressed, with unresolved property crisis and youth unemployment. The summit covers tariffs, rare earths, AI safety, and Taiwan. China controls 90% of rare earth production and has used export restrictions as leverage. Both leaders face domestic pressures, with Trump's agricultural commitments unfulfilled and Xi seeking strategic stability recognition.