US-China talks bring cautious truce, but deep divides remain

US President Donald Trump has described his meeting with Chinese President Xi Jinping as a “great success,” even rating it “12 out of 10.”

But Beijing’s response has been notably restrained, signalling that the world’s two largest economies are still far from resolving their deep-seated differences.

While Trump spoke of a deal that could be reached “pretty soon,” China’s initial statement sounded more procedural.

It said Xi had urged both negotiating teams to “follow up as soon as possible,” hinting that Beijing prefers to move cautiously and maintain leverage in what it sees as a long-term strategic contest.

A second, more detailed Chinese statement later echoed some of Trump’s remarks aboard Air Force One.

The tentative understanding includes a US commitment to lower tariffs on Chinese imports and China’s pledge to ease export controls on rare earth minerals — materials vital to the production of smartphones, electric vehicles and advanced weaponry.

Although no final deal has been signed, the breakthrough offers a brief reprieve for global markets rattled by months of uncertainty.

Both sides have been engaged in extended negotiations aimed at restoring stability to a relationship that has defined the global economy for more than a decade.

Analysts warn that Thursday’s understanding is only a pause in escalating tensions, not a reset.

“The US and China are going in different directions,” said Kelly Ann Shaw, a former economic adviser to Trump.

“It’s really about managing the breakup in a way that does a limited amount of damage — that preserves US interests, and from China’s perspective, preserves their own interests.But this is not a relationship that is necessarily going to improve dramatically anytime soon.”

For now, both sides appear to have achieved their immediate goals: Trump can claim a diplomatic win ahead of a challenging political season, and Xi gains time to strengthen China’s economic defences.

Yet beneath the public smiles, the fundamental clash, over trade, technology and global influence, remains unresolved. Agencies