Xi-Trump breakthrough

Donald Trump and Xi Jinping turned new a leaf in resilience as they entered into an unwritten agreement on easing the ongoing trade war between the US and China. The superpower summit held at a South Korean airbase in Busan was startling in essence as the leaders of the two biggest economies reportedly yielded a one-year deal to partially roll back trade and technology controls.

The US president's body language was one of euphoria as the impulsive leader had managed to convince his Chinese counterpart to suspend controls on the export of rare earth minerals, availing, in return, scaled-down tariffs on its exports to the US. The breakthrough has come in the form of US cutting tariffs by 10% and China agreeing to buy US chips from Nvidia, California. Xi, nonetheless, kept his cool as he, apparently looking at the broad canvas, has to retain his country's edge on global trade, unlike Trump's intention to appease constituencies at home.

Xi took the chariot forward at the 21-member Asia-Pacific Economic Cooperation (APEC) meeting, wherein he pushed for a global body to govern Artificial Intelligence. That is tantamount to allowing China to rise as an alternate to the US in the hi-tech domains, as the latter had already rejected efforts to regulate AI in international bodies. That for many — including Japan and South Korea, the allies of the US — was a clear message of muscle-flexing by China as it seemed unmoved after having a difficult dialogue with Trump. Xi's insistence on promoting "free circulation" of green technologies — a cluster of industries from batteries to solar panels that China dominates — would come as a nightmare for corporates of Silicon Valley.

Trump and Xi need to hold a choreographed summit, wherein they can address all the irritants in a rational manner. Trump's proposed visit to China in April and Xi's return trip to Florida would be a good start. Trump rating his "understanding" with Xi at "12" on a scale from zero to 10 is instinctive of his business mindset, and warrants walking the talk.