US-China Economic Links Take Center Stage as Trump-Xi Summit Nears

The White House summit between Donald Trump and Xi Jinping has shifted attention from tariffs to deeper economic links between the US and China. The meeting comes as investors look for a more stable trade relationship, but experts warn that structural changes in technology and supply chains may be harder to reverse.

Treasury Secretary Scott Bessent announced an extension of the Busan trade truce from November 10 to January 10, 2027. This move has pushed back the immediate tariff cliff, allowing investors to focus on the impact of US-China economic links in areas like artificial intelligence and rare-earth supply.

The AI boom is a key area of concern, with China investing heavily in domestic chips, models, and data-centre infrastructure. While the latest talks have not dismantled the technology rivalry between the two countries, officials agreed to continue AI-safety discussions in Shenzhen within two months.

Nvidia and other US technology companies may face ongoing challenges as Washington seeks to protect its advantage in advanced computing. China's dominance in rare-earth materials also poses a significant risk, with Beijing controlling roughly 70% of mining, 85% of refining, and about 90% of alloy and magnet production.