Economics
Jun 25, 2026
Qiyuan Xu
At their summit last month, US President Donald Trump and Chinese President Xi Jinping seemed to recognize that they are in the same boat. If either the United States or China tries to cripple or decouple from the other, it will harm its own firms, consumers, financial markets, and innovation ecosystem.
BEIJING—Last month’s summit between US President Donald Trump and Chinese President Xi Jinping signaled that the Sino-American relationship is moving from intense confrontation back toward something more stable. Both sides have committed to fostering a “constructive relationship of strategic stability.” Their disagreements have not disappeared, but each has come to realize that continued escalation is costly, dangerous, and unsustainable. Competition must be governed by rules, and disputes must be managed.
