‘Tangible outcomes’ needed for truce to hold

BEIJING — In a summit dominated by spectacle, the U.S. and China have essentially agreed to keep talking.

President Donald Trump hosted Chinese President Xi Jinping in Washington, D.C., last Wednesday to Friday in Xi’s second state visit since 2015. Trump personally greeted Xi at the airport in a very rare gesture, and more than 100 people, mostly from U.S. government and businesses, attended a state dinner for Xi.

But there were few breakthroughs, including a far shorter-than-expected two-month trade truce extension.

“I’m concerned that this kind of diplomacy and this fragile detente is really unsustainable — if it doesn’t result in more tangible outcomes or in addressing in some way the strategic challenges that are clearly manifest across the entire relationship, from the strategic relationship to economics,” Daniel Kritenbrink, partner at consultancy The Asia Group, said Monday on CNBC’s “Squawk Box Asia.”

Statements from both countries following the summit agreed on only a handful of points.

Peter Alexander, Shanghai-based managing director of Z-ben Advisors, said he was surprised the two sides issued separate statements rather than a joint one.

It means “the two sides are truly locked in a battle seeking to determine where escalation dominance in the relationship resides,” Alexander said in a note Monday. He had expected Xi would not likely travel to the U.S. unless a joint statement had been agreed to in advance.

Here are major areas where the U.S. and China sent similar messages, according to their readouts released over the weekend:

First, Trump and Xi both intend to attend the APEC meeting in Shenzhen in November, and the G20 summit in Miami in December.

Second, the two countries agreed to hold an AI dialogue in the next two months, and establish a communication channel for AI incidents. But while the U.S. used the term “Super Intelligence,” China still referred to the technology as AI in its readout.

Third, both readouts pointed to how the U.S. and China were allies during World War II and “fought side by side to win the war.”

During the summit, the two presidents each referenced that cooperation in relation to Japan.

When welcoming Xi to the White House, Trump referenced the Flying Tigers, a group of American pilots that fought the Japanese in Myanmar and China in the early 1940s.

Xi’s dinner toast to Trump was more specific: “Over 80 years ago, the Chinese and American people stood shoulder to shoulder in a fight against Japanese militarist aggressors.”

Analysts from both the U.S. and China pointed out the historical reference also signaled broader efforts between the two countries to cooperate.

But a Chinese social media account called “Chairman Rabbit,” long seen as having insight into Beijing’s thinking, directly linked the World War II comments to Japan.

“If we were to say who the biggest loser was of this China-U.S. Summit in Washington, D.C., it would be the Sanae Takaichi government,” the account wrote in an article Saturday. That’s according to a CNBC translation of the Chinese.

Nearly a year ago, Takaichi drew Beijing’s ire by indicating an attempt to seize Taiwan by force could prompt Japan’s Self-Defense Forces to intervene. Beijing considers the independent, self-ruled island part of its territory. During the latest meeting with Trump, Xi urged the U.S. to oppose “Taiwan independence.”

Fourth, the U.S. and Chinese presidents signaled some alignment on limiting Iran’s nuclear weapon capabilities, and agreed “no country or institution can be allowed to impose tolls on international waterways.”

Fifth, both countries formalized Board of Trade and Board of Investment plans, and agreed to reduce tariffs on $30 billion worth of goods from the other.

China’s Commerce Ministry said Monday that this figure would include Chinese coal imports from the U.S., and noted plans for purchases in 2027 and 2028, without specifying an amount. The U.S. readout said each year would see Chinese imports of at least 10 million metric tons of coal.

The two countries also said they would establish a working group to discuss agricultural trade, with China’s Commerce Ministry specifying sector talks would start before the end of 2026.

Businesses will now watch the timeliness of implementation.

“Despite the red-carpet treatment and effusiveness of both Trump and Xi, the two sides’ fact sheets suggest how wary each is of the other,” said Scott Kennedy, senior advisor and trustee chair in Chinese business and economics at the U.S.-based think tank Center for Strategic and International Studies.

“The deliverables on trade, rare earths, refined oil, investment, and AI are all quite limited and tentative,” he said. “Although Taiwan was discussed, it did not find its way in either side’s official readout, suggesting no progress.”

China’s Commerce Ministry statement Monday also referenced plans to increase flights between the two countries, and open the financial sector to businesses from all countries, but did not elaborate.

On Sunday, Zoo Atlanta announced two giant pandas arrived from China, just days after Xi said Beijing was sending the bears.