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In Beijing, Trump meets a China that still holds key economic cards

Xi Jinping hosted Donald Trump, highlighting China's strong economy, fueled by AI infrastructure exports. However, global energy disruptions and limited domestic consumption pose risks. China's trade surplus widened by using oil reserves, but future imports may inflate global prices. The US battles inflation from its trade deficit, with Trump's tariff powers curtailed. China uses rare earths leverage, while US farm exports offer an easy trade fix. The article suggests China's domestic consumption limits its global influence compared to US imports. Both nations navigate complex economic landscapes, anticipating peace in the "chips vs magnets" war.

Economic Times · ET Bureau · May 13, 2026 at 7:14 PM

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