Pragmatic recalibration

President Donald Trump got a reality check during his visit to China as he relied on the softies of economic interaction. The leader of the world's sole superpower was categorically told by his Chinese counterpart, Xi Jinping, that it's time to go beyond the rhetoric of warfare in the Middle East. The host also made it clear that the theory of Thucydides Trap – i.e. a rising power threatening to displace an established one – is irrelevant in the new era.

Beijing played cool to the high-profile guest as they reiterated their common understandings on maintaining stable trade ties with an added impetus in bilateralism through constructive strategic stability. For Trump, it was a breakthrough as no irritants were flagged, and he was reportedly able to bag worthy deals in the realms of AI, aviation and agriculture. From Xi though, the message to the White House incumbent was clear: Beijing's policies on Tehran, Taiwan and global supply chain will remain unchanged.

That no elaborate details of the 'summit of superpowers' were made public has both merits and drawbacks. The tetra-rich entourage, meanwhile, was met with a cold shoulder, dashing hopes of a capitalist boom in China. Nvidia, Boeing, soybean oil and rare earth minerals were mere footnotes sending shivers in markets. China's blue-chip CSI300 Index and Shanghai Composite Index each fell more than 1%, while Hang Seng in Hong Kong lost 1.6%. Yet with promises for a buoyancy in ties, Trump kept his head high to canvas it as a win-win proposition as the Republicans face a tough time at mid-term polls.

The summit was a pragmatic recalibration wherein Trump focused on economic and strategic priorities, whereas Xi sought enhanced diplomatic leverage. The quid pro quo was evident as the Blue Stripes admitted Iran-China strategic cooperation as indispensable, and the Red Dragon agreed on an uninterrupted Straits of Hormuz to provide a much desired face-saving for Trump. For many the hype was missing, irrespective of a gracious walk in the gardens of Zhongnanhai. Perhaps, the war had reset the fulcrum of a rising power in the east, and one that is in decline in the west.