As China’s Xi looks to Trump meeting, domestic economy weighs heavy
China’s growth is spluttering, potentially complicating Xi Jinping’s negotiating position ahead of two high-stakes meetings with President Donald Trump in 2026.
Chinese leader Xi Jinping’s unflinching response to President Donald Trump’s trade war this year has paid off: Tariffs have been dramatically reduced, new export controls and port fees have been suspended, and China can even now buy the more advanced Nvidia chips that will help its AI ascendancy.
By pulling China’s economic levers — like weaponizing the supply chains of rare earth minerals that China dominates — Xi was able to inflict enough pain to cause Trump to backtrack on his toughest measures.
Heading into 2026 with two meetings with Trump on the schedule, Xi’s negotiating position might be weakened by widening imbalances in the world’s second largest economy: Despite its exporting might, China’s domestic slump has only grown worse in the last few months of this year.
